The Rajasthan government is planning to amend the bye-laws of District Central Co-operative Banks (DCCBs) to allow them to start insurance business, a move aimed at strengthening and expanding the cooperative banking sector in the state.
Replying to a query in the Rajasthan Legislative Assembly on Monday, Cooperation Minister Gautam Kumar Dak said the state government is taking several steps to improve the financial strength and operational scope of cooperative banks.
Responding to a question raised by Chandrabhan Singh Chouhan, the minister said amendments are being made in the bye-laws of Central Co-operative Banks so they can offer insurance services and diversify their revenue sources.
Dak also informed the House that the government will conduct surveys in districts where no District Central Co-operative Bank currently exists, and new banks may be set up based on feasibility and financial viability.
He added that Rajasthan currently has 29 DCCBs with 304 branches operating from rented buildings, collectively serving 29,639 villages across the state.
The minister further said banking kiosks are not under consideration due to high capital and operational costs, though basic services are being provided through Primary Agricultural Credit Societies (PACS) in rural areas.