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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Include cooperative banks in exchange of notes: Is including cooperative banks in the process of exchange of notes due to demonetisation.
Nov 19, 2016 Related to : GS paper- 3

Ans :

Demonetisation of high value currency notes of Rs.500 and Rs.1000 has resulted into huge rush of people in front of banks to exchange their high value currency notes.  It has been witnessed that both banks as well as ATM’s were running out of cash. Rural areas have witnessed more impact than the urban areas. It is mainly due exclusion of cooperative banks in the process of exchange of notes. Hence it is necessary them to treat on par with other banks in the process of exchange.


  • Cooperative banks are excluded mainly because many cooperative banks are under the control of politicians and thus might be used to launder black money. 
  • But this aspect should not a justification for exclusion of cooperative banks, because in India many farmers are solely relied on the cooperative banks for their financial needs.
  • Cooperative banks play a vital role in extending the reach of formal finance to the rural areas, as millions of farmers fulfil their banking needs through the multi-layered cooperative banking system.
  • Hence government must include these banks in their process of exchange of currencies and treat them on par with other banks.


  • Instead of suspecting, RBI and state government should adopt possible safeguard to avoid misuse and let the cooperative banks works in exchange programme. 
  • Even RBI and state governments can deploy officers to contain the misuse and to prevent politicians from laundering the new currencies.

Cooperative banks play an important role in providing the financial services to the farmers.  Due to demonetisation of high value currencies many farmers are facing cash crunch situation. In this situation, excluding cooperative banks from the process of exchange is not good idea. Though there are various issues with cooperative banks, but in the process of exchange adequate safeguards can be arranged. Hence government should include these banks in the exchange process.


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