Cooperative banks provide 70 per cent of total short term crop loan and account for more than 55 percent share in agriculture credit. Odisha cooperative minister Damodar Rout made an announcement while answering a question in the state assembly.
Between 2010-11 and 2014-15 (upto December 2014), the cooperatives banks disbursed Rs 26,662.23 crore as crop loan and agricultural term loan meant for buying equipment or creating infrastructure for farm produce.Despite higher advances, the cash deposited with cooperative banks are mere four per cent of total deposits of all banks in the state.
The minister said the state govt. asked the departments to deposit funds with cooperative banks since they are major lender to the agriculture sector. But the cooperative banks are not functioning as per the treasury code issued by the finance department. They will be allowed to make pension payments and conduct treasury transactions once they comply with the code, the minister assured.
There are two major players in cooperative banking in the state — Odisha State Cooperative Bank (OSCB) and Odisha State Cooperative Agriculture and Rural Development Bank (OSCARD). Besides, around a dozen district cooperative banks operate at district and small town level to provide lending facility to farmers.