The Maharashtra govt has called upon the RBI to reconsider its decision of rejecting banking applications of district central cooperative banks in Nagpur, Wardha and Buldhana.
The state govt has said it is ready to offer a bailout package to these cooperative banks. Govt. sources claim the bailout package could not be earlier given as the election code of conduct had come into force.
Independent sources say the whole crisis surfaced because the govt. had unconscionably delayed its financial help on petty political considerations. All necessary steps are being taken now by the authorities concerned to defuse the crisis, add sources.
Scores of cooperative societies having their reserve funds in these cooperative banks underscores the fact that the banks could not be allowed to shut down under any circumstances.