NEW DELHI: While some states such as Kerala, where cooperative banks have total business of more than Rs 1 lakh crore, are clearly impacted, in other states such as Maharashtra such banks are seen as controlled by corrupt politicians and not following RBI’s KYC & other norms. ET brings you ground reports from six states…Uttar Pradesh has about 1,700 branches of cooperative banks, including 1,400 district cooperative bank (DCB) branches, in 50 districts, offering facilities, including recurring deposits (RD), savings accounts, fixed deposits and current accounts.These banks enjoy good customer base in various areas, particularly in the ‘sugarcane belt’ of Meerut, Saharanpur and Muzaffarpur.“In these areas…sometimes even nationalised banks approach cooperative banks for business relations,” a retired employee of a DCB told ET on phone. “Cooperative banks are facing problems to play its role in the interest of farmers. But the RBI has now fixed their withdrawal limit at `24,000 per week (Rs 50,000 per week for current accounts), said A K Purushothaman, GM, Kannur district cooperative bank. Now these banks are facing customer ire.“They are demanding their money for various needs and we cannot give,” said Radhamani, secretary of the Puthenchra cooperative bank in Thrissur.

Source: Economic Times November 17, 2016 19:05 UTC