Maharashtra Regulator Cracks Whip On Co-Op Interest Rates

Come March 31, 2003, district central co-operative banks (DCCBs) in Maharashtra will no longer be able to pay high interest rates on term deposits.

The Registrar of Co-operative Societies (RCS) has set March 31 as the deadline for these banks to bring down the interest payable on deposits to a maximum of eight per cent.

Currently the interest rates offered by the DCC Banks on deposits, at 10-11 per cent, is totally out of sync with that paid by the mainstream commercial banks. The latter pay a maximum interest of around six per cent on a three year term deposit.

At a meeting of 11 weak DCCBs