Maharashtra govt has sanctioned Rs. 79.11 crore for improving the cash to reserve ratio (CRR) of the district central cooperative banks in Nagpur, Wardha and Bulshana. These are district level nodal banks that disburse farm loans in the three districts, reports Times of India.
As required by the RBI norms, a bank whose license has been suspended needs a CRR of 7% for revival. Nabard, in its report on the three banks, had called for a capital infusion of Rs 145.09 crore for meeting these criteria.
Earlier the government had cleared Rs 379.67 crore in March 2015 for improving the financial situation of the three banks.
Nagpur DCC Bank needed Rs 24.81 crore, Wardha needed Rs 50.37 crore and Buldhana needed an additional Rs 69.90 crore.
Nagpur DCC Bank had landed in financial trouble in 2002 due to Saoner MLA Sunil Kedar (Congress). Kedar, then an NCP MLA and bank’s chairman was involved in allegedly siphoning away Rs 150 crore from it. This was one of the biggest cooperative scandals of the country involving top politicians.