Cabinet decides to rejuvenate Land Development Banks

Mumbai, May 21 (UNI) The Maharashtra Cabinet in its meeting today decided to rejuvenate The State Land Development Bank and 15 district land development banks that were in liquidation since 2002.

The plan would facilitate inflow of central funds into these banks, under the Vaidyanatahn report, accepted by Union Government and the state governments.

The Maharashtra State Government Co-operative Agriculture Rural Multipurpose Development Bank, popularly known as ''BHOOVIKAS'' or Land Development Bank was functioning since 1935. However, as losses were mounting, the Bank was divided into various district banks and one Central Bank at the State level.

But the redistribution of assets could not stop downwards trend of the banks and the Central Bank, following which 15 districts banks were taken into liquidation, as per a cabinet decision in 2002.

As the Vaidynathan committee does not finance the liquidated banks, the state government has now decided to restart operations of the Central as well as 15 district banks under the Co-operative Act of 1960.

This decision will rejuvenate Central Bank at Mumbai as well as banks at Buldhana, Raigad, Dhulia, Jalgon, Parbhani, Jalan, Nanded, Nagpur, Bhandara, Chandrapur, Wardha, Yavatmal, Amravati, Gadchiroli and Akola.

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