Kolhapur: The Kolhapur District Central Cooperative Bank (KDCCB) has halted its operation after facing a severe cash crunch situation. The bank was receiving Rs 2 to 5 crore against their required demand of Rs 35 to 40 crores.Meanwhile, the bank has appealed its customers to initiate online transaction for the time.A recent circular from KDCCB said, "The bank has been receiving insufficient funds for the daily operations. KDCCB has as many as 191 branches across the district. These branches look after agricultural loans, milk payments and pensions and salaries of the teachers. The bank has been trying to source funds from Sangli, Satara, Goa and Pune to cater the needs of the customers.""We have distributed around 1,45,000 Kisan and Rupay cards to the farmers. These cards can be utilised at ration shops and petrol pumps. Therefore, customer should prefer the online modes of transactions."Of all, the cash crunch has affected the payments of milk. The largest milk producers in the district, Gokul has deposited milk bill worth Rs 40 crore in a span of every ten days. The next instalments are scheduled for April 23 and if cash crisis continues, the bank will land in a very difficult situation," the circular added.A senior official in KDCCB said, "Cooperative banks have suffered the most during the demonetisation period. These banks continue to suffer. The present cash crunch situation has put the bank on a back foot. It is the crucial period for the farmers as their crops are at the primary stage. They require money for fertilizers. We are trying to find a solution by funding cash from other districts."

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