Pawar to take up issue of co-op banks facing closure with FM
With over 70 district cooperative banks facing cancellation of licences, agriculture minister Sharad Pawar today said he would take up the matter with the finance minister as the move could have a negative impact on disbursement of crop loans.delhi Updated: Mar 05, 2012 16:42 IST
With over 70 district cooperative banks facing cancellation of licences, agriculture minister Sharad Pawar on Monday said he would take up the matter with the finance minister as the move could have a negative impact on disbursement of crop loans.
These banks are unable to recover loans and are facing financial crunch.
"Notices have been given to over 70 district central cooperative banks (by RBI) that there licences would be withdrawn if they do not complete recoveries by March 30, 2012 and improve their financial health," Pawar told reporters on the sidelines of a Kharif conference.
Pawar said since the deadline is nearing, the issue needs to be resolved at the earliest.
"I myself will take up this subject with the finance minister and will try to find some solution," he said.
Pawar pointed out there could be an "adverse impact" on crop loans if the licences of over 70 district central cooperative banks and four state cooperative banks are cancelled. These banks are located mainly in Maharashtra, Uttar Pradesh, Bihar and some other states.
Although the commercial banks could pitch in to provide loans, it would not help much as these district cooperative banks have a reach up to the village level, the minister said.
"That's why I want to find a solution at the earliest," he said expressing concern over the situation.
The government has set an agriculture credit target of Rs 4,75,000 crore in 2011-12 fiscal.
First Published: Mar 05, 2012 16:36 IST