The Maharashtra State Co-operative Bank (MSCB), the apex cooperative bank of the state, has taken a major step towards digital transformation by enabling UPI payments across its vast cooperative banking network in partnership with fintech firm airpay Payment Services.
With this initiative, instant QR-based digital payment facilities will now be available across MSC Bank’s entire ecosystem, covering thousands of village-level cooperative institutions and branches across Maharashtra. The move is expected to accelerate the shift from cash to digital transactions in rural and semi-urban areas.
MSCB’s network includes more than 21,000 Primary Agricultural Credit Societies (PACS), 31 District Central Co-operative Banks (DCCBs) and 55 MSC Bank branches. Together, these institutions handle an annual business volume of around Rs 62,000 crore, a significant portion of which is expected to gradually move to digital mode following the rollout of UPI services.
The initiative is particularly significant because cooperative banks serve as the primary financial touchpoint for millions of farmers, traders and rural entrepreneurs in Maharashtra. By integrating digital payment infrastructure across this network, MSC Bank aims to bring modern banking facilities to grassroots cooperative institutions and small merchants, many of whom will be using digital payments for the first time.
Founded in 1911, the Maharashtra State Co-operative Bank has long played a pivotal role in supporting the state’s rural economy through the three-tier cooperative credit structure. The bank acts as the apex institution linking district central cooperative banks and village-level PACS, providing financial support to agriculture, rural industries and cooperative institutions.
MSCB Managing Director Dilip Dighe said the partnership with airpay marks an important milestone in the bank’s digital transformation journey. By integrating digital payment solutions across the cooperative network, the bank aims to provide seamless and secure banking services while improving transparency and efficiency.
Dighe added that the initiative will strengthen financial inclusion by enabling farmers, traders and cooperative members to adopt digital transactions with ease. He expressed confidence that the transition to digital payments would help the cooperative sector align with the vision of a cashless economy.
The rollout also comes at a time when institutions such as NABARD and the Reserve Bank of India are encouraging cooperative banks to modernise their systems and adopt fintech solutions. The MSC Bank initiative is being seen as one of the first large-scale efforts to digitise cooperative banking transactions across an entire state-level cooperative network.
Industry experts say the model could serve as a template for other cooperative banks across the country looking to accelerate digital adoption in rural areas.
