A recent decision by Maharashtra’s Cooperation Department to cap the commission of Pigmy agents at 2.5 per cent has triggered strong resentment among thousands of agents working in the cooperative banking sector across the state.
Pigmy agents, who collect small daily savings deposits from households, shopkeepers, and small traders on behalf of cooperative banks and credit societies, fear that the move will severely impact their livelihood. According to agents, they were earlier receiving commission between 3 and 4 per cent, enabling them to earn nearly Rs 10,000 to Rs 25,000 per month depending on their collections.
The new limit was reportedly introduced through a circular issued recently by the department. Agents claim the reduction in commission comes at a time of rising inflation and increasing financial pressure on middle and lower-income families.
Several cooperative sector representatives have termed the move “unfair” and warned that it could demotivate field-level deposit mobilization, which plays a crucial role in strengthening cooperative banking operations, especially in semi-urban and rural areas.