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Shinde Cabinet Permits Govt Offices To Carry Out Transactions With Maharashtra State Cooperative Bank

The Eknath Shinde government approved the Maharashtra State Cooperative Bank, Mumbai for handling banking transactions of government offices and for holding funds for state public sector undertakings.

The Eknath Shinde government on Thursday approved Maharashtra State Cooperative Bank, Mumbai for handling banking transactions of government offices and for holding funds for state public sector undertakings.

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The state cooperative bank plays a significant role in the cooperative sector, and this decision was taken to make the bank more efficient and to increase its rural outreach, an official statement said.

The Maharashtra government on Thursday allowed its offices to carry out transactions with the Maharashtra State Cooperative Bank, the statement said.

Banks, both nationalised and private, with a total value of Rs 16,000 crore or more, continuously earning profit for five years, having a Capital Adequacy Ratio of more than 12 per cent, and no financial constraints or immediate corrective action from the Reserve Bank of India (RBI) should be considered for government office banking transactions and additional deposits from large boards.

The Maharashtra State Cooperative Bank, Mumbai has a net worth of more than Rs 4,000 crore and has been profitable for the last five consecutive years.

It also maintains an 'A' grade in audits for the past five years and has a Capital Adequacy Ratio of more than 12 per cent, it said.

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There are no financial constraints or immediate corrective actions from RBI on this bank, and, thus, it qualifies based on these criteria.

In the future, the finance department will periodically increase the minimum net worth requirement.

Also, banks will be added or removed annually based on these criteria, the statement informed.

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