This explains why these banks are supposed to attract the RBI action. The govt contemplates beginning an action plan to bail them out. There are 15 lakh depositors altogether with these banks. Experts say austerity programs alone can ensure their survival.
Sources are quoted as claiming the RBI and Nabard have jointly worked out the action plan. The banks likely to be covered under the plan include DCBs of Osmanabad, Solapur, Jalna, Yavatmal, Nashik, Dhule, Nandurbar, Sangli and Beed. The DCBs of Nagpur, Wardha and Buldhana that are already closed will also benefit from the plan, add sources.
The plan entails a soft loan of up to 40% of the funds required for the banks to meet CRAR criterion. The DCBs of Nagpur, Wardha and Buldhana were recently included for this plan that was originally meant for the 23 DCCBs in UP, West Bengal and Jammu and Kashmir.