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State at loggerheads with Center over RBI circular

Friday, 18 July 2014 - 9:54pm IST | Place: Pune | Agency: dna

Minister Patil demands withdrawal of the circular on SLR

The Reserve Bank of India (RBI) circular on statutory liquidity ratio (SLR) would create Center-State confrontation with state Government on Friday, demanding withdrawal of this circular. Maharashtra Government would be sending a delegation to meet Union Government in this regard.

Minister for Cooperation, Harshawardhan Patil, on Friday informed that the RBI circular dated June 5, 2014 has stated that the amount towards SLR would have to be kept with Nationalized Banks instead of apex cooperative bank. He said that the SLR amount would be invested in Government security bonds after April 1, 2015.

The 32nd foundation day celebrations of National Bank for Agriculture and Rural Development (Nabard) was organized by its Pune regional office. The additional chief secretary Sudhirkumar Goyal, Bank of Maharashtra CMD Sushil Muhnot, Nabard Chief General Manager Maharashtra Regional office and Pune District Central Cooperative Bank President Digambar Durgade were present at the dais.

Patil informed that he has discussed the issue with Chief Minister and deputy chief minister after which state Government has decided to send a letter to Union Government demanding removal of this circular. He said that state Government would demand withdrawal this circular since it would remove Rs18 to 20 thousand crore from the cooperative sector there by destroying it in the state. He said that the state Government would also send a delegation to meet Union Government in this regard.

Patil's criticism
Criticizing change of guards at the Center, Patil said, "We have heard that Acche Din Aa Gaye Hai, but this circular does not show that Acche Din Aaye Hai. Nabard officials should understand this circular and oppose it since the very existence of Nabard is based on the strength of the farmer who is dependent on cooperative sector in the state."

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