Mumbai: The Maharashtra state government is putting up a proposal to completely eliminate brokers from dealing with cooperative banks. According to officials, the government will submit the proposal to the Reserve Bank of India (RBI), the National Bank for Agriculture and Rural Development (Nabard) and the Registrar of Cooperative Societies.

State government officials say they have initiated proceedings towards the recovery of some of the losses incurred in the scam by attaching assets of the promoters of the cooperative banks. "But losses involved are huge sums of money, and most of it has been swindled away in the equities market. So it may not be possible to recover the full extent of the funds lost."

The officials add that some of the important recommendations made by Nabard and submitted in a report to the RBI include that no individual broker should handle more than 5 per cent of the business in any one bank. The report also says that all transactions should be routed through the SGL and the role of brokers should be limited to the minimum.