Although such movements in these markets appear to have reversed, the ensuing developments and their economic consequences require close attention. With regard to corporate finance, credit demand for economic activities seems to remain weak, although firms, particularly large ones, are further seeking to secure ample on-hand liquidity.
136 Billion) to the financially haemorrhaged Short Term Cooperative Credit Structure but also, only appropriately, made it conditional upon rigorous and stringent compliance with, and progress on, pre-specified critical parameters like facilitating regulatory powers of the RBI, limiting equity participation of State Governments in cooperative banks to 25%, limiting the powers of State Governments to supersede the boards, removing State Government intervention in all financial and internal administrative matters, special audits of PACS, District Central Cooperative Banks (DCCBs), and State Cooperative Banks (SCBs), conduct of Statutory Audit by Chartered Accountants (CAs), timely election of Board of Directors, appointment/co-option of professionally qualified Directors and appointment of Chief Executive Officers (CEOs) in accordance with the RBI-prescribed fit-and-proper criteria, training and Human Resources Development, computerization, Common Accounting System (CAS) and Management Information System (MIS), by amendment of State Co-operative Societies Acts and amendment of Rules and adoption of appropriate Bye-Laws.