New RBI Governor meets Maha chief minister

Maharashtra Chief Minister Prithviraj Chavan said on Friday banking sector should come forward to strengthen the cooperative sector in the state.

He said this during a meeting with the new Reserve Bank of India Governor Raghuram Rajan, a spokesperson for the Chief Minister said.

Considering the economic downturn, the banking sector should help strengthen the cooperative sector to encourage small and medium industries and create jobs, Chavan said.

Rajan had an hour long meeting with Chavan, the spokesperson said, adding it was a courtesy call by the RBI Governor.

"The global economic downturn could affect the country's economy and also the economy of the state. Banking sector needs to take measures to ensure that the industries and development works are not affected by it," Chavan said.

During the meeting with Rajan, Chavan also expressed hope that the banking sector would extend all help in financial planning for infrastructure projects, the spokesperson said.

The Chief Minister briefed the RBI Governor about various measures taken by his government to make Maharashtra drought-free.

The government would focus on decentralisation of water and will also ensure completion of irrigation projects which are in the final stages, he said.