Chavan meets Pawar, Chidambaram on district co-op banks

Chavan met Agriculture Minster Sharad Pawar and Finance Minister P Chidambaram to find ways to revive district cooperative banks in Nagpur, Wardha, Buldhana, Jalna, Osmanabad and Dhule-Nandurbar.

The meeting was a follow-up of discussions Chavan had with Pawar in Mumbai on Saturday.

The chief minister said that he has sought extension of the RBI deadline in this regard.

These six banks are among the 42 co-operative banks banned by the Reserve Bank of India from accepting fresh deposits in April after they failed to meet a March 31 deadline on achieving critical parameters on minimum capital adequacy ratio and net worth.

RBI has given the banks until September 30 to draw up a revival plan.

The programme, known as the monitorable action plan, was a last-ditch effort by RBI to revive the distressed banks.

If the co-operative banks under watch are unable to improve their positions by September, they may be asked to either shut down or merge with other banks.

Chavan told reporters that the six banks have met almost 90 per cent of the critical parameters stipulated by the RBI and the rest could not be met due to some cases pending before courts.