The Maharashtra State Cooperative Bank (MSCB) has made history by becoming the first-ever State Co-operative Bank to receive the Reserve Bank of India’s approval to issue bonds worth Rs 500 crore, in line with RBI’s economic competency norms.
The bond distribution commenced with a grand ceremony on March 20, 2025, at 10:00 AM, led by Maharashtra’s Deputy Chief Minister Ajit Pawar. The event saw the presence of several key dignitaries, including Co-operation Minister Babasaheb Patil, Minister of State for Co-operation Pankaj Bhoyar, Public Works Minister Shivendraraje Bhosale, NAFSCOB Executive Director Bhima Subramaniyam, and representatives from various cooperative and industrial sectors.
During the ceremony, the Deputy Chief Minister distributed credit bonds to the first five institutions and lauded MSCB’s progress. He emphasized the need to strengthen the cooperative movement and urged all cooperative institutions to follow MSCB’s lead in adopting modern technology and innovative schemes to stay competitive. The MSCB-issued credit bonds, with a tenure of 10 years, offer an annual return of 8.50%.
While banks are restricted from investing in these bonds, cooperative credit societies, housing societies, sugar factories, trusts, companies, and individual investors stand to benefit. Pawar highlighted that cooperative credit societies could use funds from these bonds to meet statutory obligations and announced tax benefits under Section 80(P) of the Income Tax Act for cooperative societies.
MSCB Administrator Vidyadhar Anaskar reviewed the bank’s progress and presented insights into the newly established ‘Cyber Security Operation Center’ (C-SCO) at MSCB’s Vashi, Navi Mumbai facility. He expressed confidence that the entire bond issue would be fully subscribed before the RBI’s deadline of June 30, 2025.
The event was expertly compered by Rajendra Patankar.
