During the two-day National Level Review Meeting held in Shillong, Meghalaya, discussions were held on the proposed establishment of two new State Cooperative Banks (StCBs) and 240 new District Central Cooperative Banks (DCCBs).
This initiative aims to further strengthen the cooperative banking network across the country and enhance financial inclusion in underserved regions.
It was highlighted that there are currently no Regional Cooperative Banks (RCBs) in the Union Territories of Ladakh and Lakshadweep. To support and promote the cooperative sector in these areas, and to meet the financial needs of the existing cooperatives, the proposal recommends the establishment of Apex State Cooperative Banks in both UTs, following a two-tier structure.
At present, a three-tier/mixed-tier Short-Term Cooperative Credit Structure (STCCS) is in place in 19 States and Union Territories. Within these regions, 350 DCCBs are functioning across 573 of the 615 districts.
However, 42 districts remain without any District Central Cooperative Bank (DCCB) coverage. This gap in the cooperative credit network highlights the need for targeted interventions to ensure financial access across all regions.
Among these 42 uncovered districts, 38 districts do not have a DCCB, although branches of the respective State Cooperative Bank (StCB) are present and operational. These branches partially meet the financial needs but do not substitute for the dedicated services provided by a DCCB.
Additionally, 4 districts—1 in Uttar Pradesh and 3 in Jharkhand—have neither a DCCB nor any branches of the StCB, leaving them entirely without cooperative banking infrastructure.
To address this disparity and strengthen the rural credit delivery system, it has been proposed that new DCCBs be established in all 42 uncovered districts. This move is expected to bring uniformity in cooperative credit availability and foster inclusive financial growth.
As of 31 March 2023, the Short-Term Cooperative Credit Structure (STCCS) across the country comprised a robust network of institutions aimed at supporting rural credit and cooperative development.
This included 34 State Cooperative Banks (StCBs) operating through 2,102 branches, 350 District Central Cooperative Banks (DCCBs) with a network of 13,644 branches, and a vast base of 1,04,234 Primary Agricultural Credit Societies (PACS) functioning across 34 States and Union Territories.