Udupi, Now 23: Concerned over the fall in cash inflow to cooperative societies following the Union government's move to demonetise Rs. 500 and Rs. 1,000 notes, the Udupi District Cooperatives Union has decided to approach high court.

All the members of the union have agreed to approach the High Court on this issue as they had exhausted all other options, said Jayakar Shetty Indralli, director of the union.
Earlier, addressing a meeting of the office-bearers of all co-operative societies of the district, Kishan Hegde Kolkebail, president of the Udupi District Co-operatives Union Ltd., said that the co-operative societies were choking due to the Union government's demonetisation move.
The co-operatives union was not against the demonetisation move. But this had reduced the cash inflow at cooperative societies drastically and it had become difficult for them to carry out their day-to-day business. The cash inflow to the societies was just 0.9 per cent.
After the government demonetised Rs. 500 and Rs. 1,000 notes on November 8, the union had directed all co-operative societies not to accept these denomination notes for either deposits or loan repayment. With the result, most of the business of the societies had come to a standstill.
The constant change of guidelines by the Reserve Bank of India (RBI) on acceptance of currency notes had created an atmosphere of confusion. There were 53 agricultural credit co-operative societies and 253 credit co-operative societies in the district with over 3.75 lakh members.
Most of the activities of the credit co-operative societies were concentrated in the rural areas. The societies were not able to provide services to the rural people after the demonetisation move. As money in circulation had gone down, loan repayment too was affected.
For the last 12 days, it had become difficult for the societies to either provide money from the deposit-holders' savings accounts.
The District Co-operatives Union had approached both the Union and State governments and written several letters to them about the reduced cash inflow, but these attempts had not yielded any fruit.
“All co-operative societies have enough funds to repay the depositors and there has been no Income Tax raids on any of the cooperative societies in the district. People should not get taken in by rumours,” Mr. Kolkebail said.
S.K. Manjunath, Gopikrishna Rao, Chandrashekhar Shetty and Y. Sudhir Kumar, directors of the union, were present.

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