District central cooperative banks in Maharashtra have been mired in serious financial difficulties. Their financial situation is so bad that they have not able to carry out their responsibilities. The BJP govt. has been exercised over the matter.
Times of India reports this is what has back-dropped the state govt. appointing a committee under cooperative minister Chandrakant Patil to study the reasons for the financial losses being faced by these banks. The committee will comprise of officials of departments concerned with the management of DCC banks.
The DCC banks are supposed to give loans to farmers and small scale industries in respective districts.
There are 31 DCC banks in Maharashtra out of which over a dozen are in crisis. These banks are managed by the elected board of directors.