SENSEX NIFTY
Jun 15, 2012, 11.23 AM IST | Source: PTI

Credit societies to act as BCs for farm credit in Maha

Credit societies to act as BCs for farm credit in Maha

Mumbai, Jun 14 (PTI) To facilitate flow of pre-monsoon credit to farmers in seven districts in Maharashtra where district co-operatives are not operational, commercial banks today conceded Maharashtra's demand for appointing credit societies as business correspondents. Six district central co-operative banks affiliated to the Maharashtra State Co-operative Bank were prohibited by the Reserve Bank from doing business as their networth went negative earlier this year. Following the restrictions, farmers of seven districts in the state found it hard to access credit ahead of sowing for kharif season and there were apprehensions that they would go to private moneylenders. The prohibited banks include those in Dhule, Nandurbar, Nagpur, Wardha, Osmanabad and Buldhana districts which used to serve seven districts. To overcome the difficulties, nationalised banks and regional rural banks (which are sponsored by nationalised banks) today conceded to chief minister Prithviraj Chavan's demand for appointing operational credit societies and other institutions as business correspondents, a press note released here said. The decision was taken at the state-level banking committee meeting here today which was attended by representatives from the RBI, top officials of nationalised banks and the chief minister himself. A total of Rs 750 crore has been disbursed to four lakh farmers in the affected districts while Rs 500 crore more is yet to be disbursed, the press note said. At the meeting, Chavan asked the Maharashtra State Co-operative Bank to take lead in facilitating flow of these funds by helping the nationalised banks and RRBs, the statement said. Maharashtra has targeted a disbursal of Rs 24,629 crore towards crop loans this fiscal, the statement said, adding the share of commercial banks has grown up to 55 percent.

ADS BY GOOGLE

video of the day

Be careful while betting on midcaps; like Kotak: Dimensions

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.