Tamil Nadu Chief Minister J. Jayalalitha Friday urged the Reserve Bank of India (RBI) to revoke its order closing the Sivaganga District Central Co-operative Bank, saying it would hit the farmers hard.

The bank's 29 branches were closed April 5 under an RBI direction after repeated notices to improve its financial position did not yield any result.

Jayalalitha said the closure had affected the rural people.

"In the interest of the farmers, artisans and the rural poor, Rs.125 million will be provided immediately to the bank. Of this, Rs.50 million will be given as an outright subsidy and Rs.750 million as share capital assistance," she said.

"This financial support, with the recoveries made by the bank of Rs.122.8 million immediately after April 1, will enable it to mostly meet even the guidelines enforced by the RBI and NABARD (National Bank for Agricultural and Rural Development)," Jayalalitha said.

Jayalalitha's statement came a day after her visit to the Sivaganga region and her assembly constituency of Andipatti.

"As per the audited figures, the bank has earned a profit of Rs.281.3 million," she claimed, charging NABARD with bias towards Sivanganga bank.

"I cannot understand why a different set of guidelines is sought to be enforced only for this bank when the rural economy is recovering from drought."