Maharashtra clears ‘conditional’ bail out package for beleaguered DCCBs
* The financial assistance of Rs 319.54 crore will be released only after court cases are settled in favour of Nagpur, Wardha, and Buldhana DCCBs and RBI has conveyed willingness to restore their banking licences By Kartik Lokhande Decisions are of real help, if there are no conditions. Though Maharashtra Government has cleared a bail out package of Rs 319.54 crore for beleaguered District Central Co-operative Banks (DCCBs) in Nagpur, Wardha, and Buldhana, it is likely to be of little help immediately because of being ‘conditional’ in nature. As decided in the cabinet meeting held recently the Co-operation, Marketing, and Textiles Department has issued a Government Resolution (GR) clearing bail out package for the three cash-strapped DCCBs in Vidarbha. As per the GR, the Government has sanctioned financial assistance of Rs 319.54 crore to enable these banks in maintaining Capital-to-Risk Weighted Assets Ratio (CRAR) of 4 per cent, which is essential for restoration...