MUMBAI: State governments have a critical role in improving the country’s fiscal performance while co-operative banks need to be more efficient to facilitate credit in rural India, said the Reserve Bank of India governor Raghuram Rajan India’s macro economic parameters have improved, growth was still slow in picking up, he said in his inaugural speech at a conference of the chief secretaries/finance secretaries and select cooperative secretaries of states.State Level Coordination Committees or SLCCs have been recently reconstituted in each State to monitor unauthorised collection of deposits and they meet more frequently under the chairmanship of chief Secretaries/administrators of the concerned States/Union Territories (UTs).Rajan dismissed the idea of infusing capital in co-operative banks without efficient governance as those banks have greater accountability in rural India for credit flows.Without efficient governance, capital infusion would not benefit the sector, as it would function as a ‘leaky-bucket’, he said.He suggested an effective mode like “good bank-bad bank”, which could identify the good part while drawing plans to deal with the bad side appropriately.