The delegation was of the opinion that while the commercial banks and regional rural banks were providedrecapitalisation assistance of Rs 20,000 crore by the centre, the same was denied to cooperative banks. This, they said, in spite of the fact that these institutions are meeting 62 per cent of farm credit needs benefiting over 20 crore farmers all over the country.

Sinha said that the task force will have representatives of the union finance and agriculture ministers. The RBI and Nabard will submit its report within three months and the task force will hold detailed discussions with representatives of the cooperative banks.

The delegations appraised the finance minister of the difficulties being faced by the cooperative banks on account of externally imposed policy measures such as waiver of loans, adherence to prudential norms in the absence of adequate finance support, accumulated losses. They have also sought income tax exemption for cooperative banks and nomination of representatives of these banks on the board of Nabard.

Sinha reportedly expressed concerns over the financial situation ofcooperative banks and emphasised on the importance of repayment of loans. He observed that the revival package should go beyond the one-time assistance and should focus on measures for long-term viablity of the banks.