In a move aimed at bringing uniformity and financial discipline, the Maharashtra Cooperation Department has capped the commission payable to Pigmy (daily savings) agents at 2.5%, making it mandatory for all urban and rural non-agricultural cooperative credit societies, regardless of whether they have adopted the revised bye-laws.
The directive, issued by the office of Deepak Tawre, clarifies that the commission on deposits mobilised through Pigmy agents “shall not exceed 2.5%.” While agents may assist in loan disbursement and recovery, no commission will be paid for these additional services.
Earlier, societies had the autonomy to decide commission rates at the institutional level. However, authorities observed that some institutions were offering higher commissions, leading to disparities across the sector.
The decision is also linked to broader financial prudence norms. With deposit interest rates capped at 10% and administrative expenses limited to 2% of working capital, officials emphasised that higher commissions could strain the financial health of cooperative institutions.
Reacting to the Maharashtra Cooperation Department’s order, Maharashtra State Co-operative Patsanstha federation (MAFCOCS) Chairman Kakasaheb Koyte expressed mixed views. He said that while he remains “neutral” on the policy, the move may be unjust to collection agents who work intensively, often going door-to-door to mobilise deposits.
Koyte highlighted that Maharashtra has around 16,000 credit cooperatives, with over 2 lakh collection agents engaged in daily deposit mobilisation, reaching nearly one crore families. He warned that the cap could impact agents’ incomes, particularly in societies such as Shivkrupa and Dnyandeep Credit Co-operatives, where thousands of agents are associated.
He further argued that the commission paid to collection agents is typically borne by customers rather than the cooperative institutions, suggesting that the cap may not significantly impact the societies’ income. Recalling a past review, he noted that Amit Shah had appreciated the scale and efficiency of the Pigmy agent network during a visit to Shirdi.
The circular supersedes all previous instructions on the subject, although any ongoing administrative or legal proceedings under earlier provisions will continue as per existing rules.
The move is expected to standardise operations across Maharashtra’s cooperative credit ecosystem while tightening cost controls.
