Tamil Maanila Congress president G.K. Vasan on Friday urged the Centre to take into account the views expressed by the Tamil Nadu government while promulgating ordinance to bring urban cooperative banks and multi-State cooperative banks within the fold of the Reserve Bank of India.
In a statement, he said when the change happens certain guidelines should also be put in place such as simplifying the procedures to enable farmers and small and medium enterprises to avail of loans at ease.
Mr. Vasan also that the ordinance must provide the rights to the State government to decide on loan waivers in case of disasters like flood, cyclone, drought among others.
He said the move would help boost confidence of depositors in these banks and ensure the safety of deposits.
There where instances of some of these banks being on the verge of going bankrupt due to lack of oversight and that would be stopped by this move, Mr. Vasan said.
The move will help banks to function with high corporate governance standards, he added.
