Maharashtra govt is soon likely to bring in an act to reign in graft and irregularities in cooperative banks and micro-financial outfits in the state. Maharashtra minister of state for cooperative said the act would be legislated in the winter session of the state assembly, reports, Asian Age.
According to the minister, the govt would set up a proper authority to monitor micro-finance organizations.
There are over 15,000 micro-finance institutes in the state with deposits worth Rs 23,783 crore. The loans given by them are of Rs 18,574 crore. Over 9,000 institutes are running on profits; however, 5,851 are in loss, the minister said.
The announcement by the govt has come at a time when leaders from the former Congress-NCP combine are alleged to be involved in corruption in the Maharashtra State Cooperative Bank.