Maharashtra government should bail out Nashik bank: Bhujbal

Incarcerated former deputy chief minister of Maharashtra Chhagan Bhujbal today sought financial assistance from the state government to bail out financially troubled Nashik District Central Cooperative Bank.

Bhujbal in a letter dated May 22 to the state government asked it to provide monetary help to the bank for crop credit disbursement ahead of Kharif season starting from mid-June.

Bhujbal, who is lodged at the Arthur Road jail here in connection with the money laundering case, said the district cooperative bank is in bad financial shape.

The farmers hoped for a loan waiver announcement in the Budget session of the assembly, hence loan recovery was stopped as a result its capital shrunk further and its situation has become critical as crop loan has to be disbursed in next few weeks, Bhujbal wrote in the letter.

He also touched upon the issue of demonetisation and its impact on old currency notes which have not yet been exchanged by the RBI.

"The bank should be able to function, hence the old currency notes should be exchanged by the RBI and union government," the letter mentioned.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)