In order to strengthen the financial position of cooperative banks, Madhya Pradesh government has decided to deposit funds of the government schemes in them.
The decision was taken at the behest of state Chief Minister Shivraj Singh Chouhan, who has issued detailed instructions to all departmental heads, divisional commissioners and district collectors, by the Finance Department, an official release said.
Cooperatives Minister Gopal Bhargava has been active in this connection for long and after the new development he has exhorted chairmen of cooperative banks to further strengthen the coopeative movement by availing this opportunity.
For the first time the name of cooperative bank has been included in the list of banks including commercial and rural regional banks for the purpose of depositing funds of various administrative bodies, government undertakings and boards.
The circular say that priority should be given to deposit additional funds in a district cooperative bank capable of carrying out transactions under section II (1) of Banking Regulation Act.
Bhargava has described it as a revolutionary measure in the history of cooperative banks in the state.
He said that on one side this decision will strengthen cooperative banks in the state and on the other it will give boost to the cooperative movement.