The state Cabinet has decided to qualify Maharashtra State Co-operative Bank in Mumbai for banking transactions of government offices and holding funds for Public Sector Undertakings.
With this, the Eknath Shinde-led government on Thursday, October 19, allowed its offices to carry out transactions with the Maharashtra State Cooperative Bank.
This decision was taken to strengthen the bank and increase rural credit.
Nationalised banks as well as private banks with a value of INR 16,000 crore or more are required to have 5 years of continuous net profit, capital adequacy ratio above 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.
State Cooperative Bank, Mumbai has total assets of more than INR 4,000 crores and has been profitable for 5 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. Also, no financial sanctions or immediate corrective action has been taken by RBI on the bank. This bank has been qualified on these criteria.
The Finance Department will take action from time to time to increase the minimum limit of cash value. Also, after review every year the list of banks will be updated by including or excluding the names of the respective banks on this criteria.
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