A note issued by the Maharashtra govt says the state cabinet has taken a decision to bolster the finances of district central cooperative banks (DCCBs)and primary cooperative agriculture credit societies in the state.
The govt has granted a total of Rs.221 crore towards this end. While DCCBs will receive Rs 131 crore , primary cooperative agriculture credit societies will get the rest of the grant. There are 31 DCCBs and 21,382 farm credit societies altogether.
Thousands of credit societies working at the grassroots level help an overwhelming majority of farmers and thus discharge a vital role in agricultural development in the state.
The cooperative banks and credit societies had been facing financial problems since the state govt. began giving farm loans at a negligible interest, the note stated.
Sources say the capital infusion would considerably help the cooperative credit bodies render their services to farmers.