Mumbai: Amid the ongoing local body elections, the BJP-led Mahayuti government on Tuesday approved Rs 827 crore as share capital for the district central cooperative banks (DCCBs) of Nashik, Nagpur and Dharashiv. The move is being viewed as an attempt to strengthen the alliance’s influence in rural areas and the cooperative sector, traditionally dominated by the Shiv Sena (UBT), NCP (Sharad Pawar faction) and Congress.
The decision to provide the loan was taken in a cabinet meeting, chaired by Chief Minister Devendra Fadnavis at Sahyadri Guest House. AICC member and senior Congress spokesperson Sachin Sawant also demanded that the State Election Commission (SEC) take a cognisance of the decision as the model code of conduct (MCC) is in place in the rural parts of the state.
An official said that the decision was taken to strengthen the financial position of the district cooperative banks and ensure smooth credit flow to the farmers.
According to a statement issued by the chief minister office (CMO), the Rs 827 crore as share capital to the District Central Cooperative Banks of Nashik, Nagpur, and Dharashiv have been approved. “Of this, Rs 672 crore will be given to the Nashik District Bank, Rs 81 crore to the Nagpur District Bank, and Rs 74 crore to the Dharashiv District Bank,” it said.
The CMO further said that the Reserve Bank of India (RBI) had asked the State Government about the recapitalisation and revival of these three district central banks. Accordingly, the cabinet has approved the financial assistance as share capital for these banks.
It is pertinent to note that District Central Cooperative Banks play a crucial role in providing crop loans to farmers. The financial health of these banks directly affects the services of cooperative credit societies working in rural areas. As a result, financial assistance of Rs 827 crore has been approved as share capital to these three banks.
“Out of this, the Nashik District Bank will receive Rs 336 crore during the current financial year and another Rs 336 crore in the next financial year,” the official said.
At present, administrators are working on Nashik and Nagpur District Banks, while Dharashiv District Bank has a board of directors. The Cabinet has also approved the dissolving of the existing board in view of the continuous deterioration of the financial condition of the Dharashiv District Bank and approved an appointment of administrator in the bank by issuing instruction to the Commissioner of Cooperation.
In a post on X, Mr. Sawant said, “Even though the MCC is in force, the Mahayuti government held a cabinet meeting and openly announced decisions that impact Maharashtra’s rural areas. In today’s meeting, share capital was announced for the district banks of Nashik, Nagpur, and Dharashiv. The government’s press note mentions that farmers receive crop loans through these banks. Funds were also approved for a storage pond in Hingoli district. It should not be forgotten that Nagar Panchayats and Nagar Parishads are also connected to rural areas. Farmers live here too. Will the State Election Commission take cognisance of this?”
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