In a significant relief for thousands of Pigmy agents working with urban and rural non-agricultural cooperative credit societies across Maharashtra, the Cooperation Commissioner has increased the maximum commission payable on deposits mobilized by them from 2.5% to 3%.
The revised circular follows representations from cooperative credit societies, federation leaders and Pigmy agents, who had argued that the earlier cap of 2.5% adversely affected the earnings of grassroots savings mobilizers.
The decision comes after extensive consultations, including a meeting convened by the Cooperation Department on June 12 with representatives of 42 cooperative credit society federations from across the state. Based on the discussions and feedback received, the department decided to revise the commission ceiling.
Under the new directive, credit societies can now pay commissions of up to 3% on deposits collected through Pigmy agents, while retaining the flexibility to fix lower rates depending on their financial position. The circular, however, continues the restriction on payment of commission for loan disbursement, loan recovery or other business activities carried out by agents.
The move is expected to boost the morale of Pigmy agents and strengthen deposit mobilization efforts in the cooperative credit sector, which relies heavily on these field-level representatives to connect with small savers and rural households.