Gujarat cabinet approves nine district central cooperative banks

Ahmedabad, Dec 31 (PTI) The Gujarat Cabinet on Wednesday granted an in-principle approval to create nine District Central Cooperative Banks (DCCBs) by carving them out from existing district banks.

This decision was taken at a cabinet meeting chaired by Chief Minister Bhupendra Patel, the state government spokesperson and minister Jitu Vaghani told reporters.

"The Chief Minister has given in-principle approval for the formation of nine new District Central Cooperative Banks. Nine new districts in Gujarat had been carved out from existing big districts over the last many years.

"Now the state government has decided to divide DCCBs of those districts from which nine new districts were formed, and assign the new DCCBs to newly-formed districts," he said.

The division of the DCCB of Panchmahal district will be undertaken to establish a DCCB in Dahod district.

Similarly, the Sabarkantha Bank will be divided for Aravalli district, the Surat Bank for Tapi district, the Vadodara Bank for Chhota Udepur district, the Jamnagar Bank for Devbhoomi Dwarka district, the Junagadh Bank for Porbandar district, the Kheda Bank for Anand district, and the Valsad Bank for Dang and Navsari districts, the minister added.

"Prime Minister Narendra Modi has decided to expand the scope of rural cooperative banks in all districts of the country. To achieve this objective, a special initiative has been undertaken by the Ministry of Cooperation under the leadership of Union Minister of Cooperation Amitbhai Shah," Vaghani said.

"As part of this initiative, NABARD submitted an approach note to the Ministry of Cooperation for the formation of new District Central Cooperative Banks in several districts across the country. This approach note also proposed the establishment of nine new District Central Cooperative Banks in Gujarat," he added.

He said these new District Central Cooperative Banks will enhance facilities for farmers and rural citizens in the state.

"This decision will make it easier for farmers in remote areas to access credit and will strengthen the rural economy,” the minister added.

The state government will now send a proposal to the Reserve Bank through NABARD for the formation of banks and will undertake further legal process, the minister added. PTI PD NSK