Inaugurating the conference of the Chief Secretaries/ Finance Secretaries and cooperative secretaries of the states, Rajan said there was a need to make State Level Coordination Committees (SLCCs) more active and effective.
He said the progress made by SLCC was satisfactory in conduct of quarterly meetings.
"While India's macro economic parameters have improved, growth was still slow in picking up," Rajan said, emphasising the importance of fiscal consolidation in terms of both, quantitative and qualitative dimensions.
"The State Governments would have a critical role in improving the consolidated fiscal performance of the government sector as a whole," he added.
Rajan also highlighted the need for improvement in governance structure, capitalisation and resolution mechanism in the cooperative banking sector.
He stated that without efficient governance, capital infusion would not benefit the sector, as it would function as a "leaky bucket".

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