Maharashtra govt has formed a eight-member committee headed by a former National Bank for Agriculture and Rural Development chairman to examine a proposal for merger of loss making district central cooperative banks with the Maharashtra State Cooperative Bank, say media reports.
The cooperation department says “60% of the farmers across the state are completely dependent on district central cooperative banks for agriculture loans.
It is found that they have failed to meet their demands, resulting in an agrarian crisis. Under such circumstances, the only option is to merge these banks with the apex bank to tackle the demands of the farmers.
A source is quoted saying the committee will study the reasons for the present crisis in the district central cooperative banks and strengthening of primary credit cooperative societies.
The report will be submitted soon.
The move assumes political importance, since most of the district central cooperative banks are directly or indirectly controlled by senior Congress and NCP leaders.
The Congress-NCP combine is opposing the move.