Kerala Passes Resolution Against Centre Targeting Co-operative Banks

 Kerala Passes Resolution Against Centre Targeting Co-operative Banks. THIRUVANANTHAPURAM:  The Kerala assembly in a special session on Tuesday passed a resolution against the centre for "sidelining co-operative banks" with only BJP legislator O. Rajagopal opposing the move. Before moving the resolution, Chief Minister Pinarayi Vijayan assured the house that the state would not lose a

single rupee put in the co-operative banks and his government would stand guarantee for it.

He also said that an all-party delegation would meet Prime Minister Narendra Modi and Finance Minister Arun Jaitley on November 24 to take up the case of the co-operative banks.

Bharatiya Janata Party member Rajagopal's attempt to move an amendment to the motion was shot down by State Water Resources Minister Mathew T. Thomas quoting rules and procedures that were upheld by Speaker P. Sreeramakrishnan.

The special session was called after both the ruling CPI(M)-led Left Democratic Front (LDF) and the Congress-led United Democartic Front (UDF) attacked Prime Minister Narendra Modi for excluding the co-operative banks from the accepting or exchanging the banned Rs. 500 and Rs. 1,000 notes.

The co-operative banking sector in Kerala is a three-tier system, with about 1,600 primary cooperative banks attached to 14 district banks, which are further linked to the apex Kerala State Co-operative Bank (KSCB).

The total deposits in these co-operative banks, according to Kerala Cooperation Minister AC Moideen is around Rs. 1.27 lakh crore.

Former Chief Minister Oommen Chandy said the biggest beneficiary of the past two weeks was the e-wallet, Paytm, that had spent Rs. 50 crore in their advertisement applauding Mr Modi. Paytm's business has doubled, he said. 

"This is nothing but financial fascism unleashed by Modi and the way it was done clearly shows that this was a foolish decision," Leader of Opposition Ramesh Chennithala said.

Former Chief Minister VS Achuthanandan slammed the state BJP president, Kummanem Rajasekheran, for applauding the decision of sidelining the cooperative banks and demanded that he be driven out of the state.

State Finance Minister Thomas Issac recalled that recently Finance Minister Arun Jaitley had said that though Kerala accounts for 53 per cent of the total cash transactions in the co-operative sector in the country, the currency ban would not harm the state.