Govt funds to be deposited in Coop banks

Bhopal, Sep 1: In a landmark step aimed at strengthening the cooperative banks, the Madhya Pradesh government has decided to deposit funds of various government schemes in the cooperative banks.

Chief Minister Shivraj Singh Chouhan issued a circular in this regard after a delegation of Cooperative Bank's Chairmen met him in this regard few days ago, official sources said.

For the first time, Cooperative Banks have been included in the list of banks, including commercial and regional rural banks, for the purpose of depositing funds of various administrative bodies, government undertakings and boards, the sources said, adding priority will be given to deposit additional available funds in a district cooperative bank capable to carry out transactions under section 11(1) of Banking Regulation Act.

Terming the decision as historic, Cooperatives Minister Gopal Bhargava said it would strengthen cooperative banks and also give a renewed vigour to the cooperative movement in the state.

Mr Bhargava exhorted Chairmen of cooperative banks to avail the opportunity to create a new record of extending financial assistance to farmers. The Chairmen were expected to strive for mobilising more funds and deposits to make cooperative banks' future brighter, he added.

UNI