The RBI has issued notices to more than three scores of district cooperative banks warning that their licences would be cancelled if they do not complete recoveries by the close of March.
RBI wants these banks to take steps to improve their financial situation, informed Sharad Pawar Union Agriculture Minister while chatting with the press on the sidelines of a kharip meet in the capital.
The minister added he would soon take up the matter with the Finance Minister and solve the problem. If not sorted out on time, he felt, the situation could be serious and disbursement of crop loans be affected.
According to the Sharad Pawar, most of the banks that have been issued notices fall in Bihar, Uttar Pradesh and Maharashtra.
Considering these banks are located in the countryside catering to a huge rural population, there is a need to seek an urgent solution to the problem, Sharad Pawar added.