Three co-operative banks in Vidarbha region of Maharashtra, which were virtually on the verge of insolvency, have received the much required Rs 150- crore revival package from the Central Government.
Nagpur, Buldhana and Chandrapur District Central Cooperative Banks (DCCBs), who had been ailing due to alleged financial irregularities and mismanagements, will benefit from the package cleared by Union Cabinet yesterday.
The Centre has decided to infuse Rs 2,375.42 crore to revive 23 District Central Cooperative Banks (including the three Vidarbha entities) in four States which were on the verge of closure. State Governments concerned and NABARD, a Central entity, would contribute to the package.
The three DCCBs would get Rs 50 crore each and modalities are being worked out on utilisation of the funds, banking sources said here.
Over the last few years, the three DCCBs had been served notices by RBI for dissolution of their boards due to alleged malfeasance and mismanagement in their functioning.
The Cabinet decision has revived the fortunes of these cooperative banks and brought a new hope for their customers.
The Nagpur DCCB is embroiled in a Rs 156-crore scam in which Congress MLA from Saoner Sunil Kedar is the main accused. Kedar is a former Chairman of the bank.
