The Union Territories (UTs) of Ladakh and Lakshadweep will soon witness the establishment of their first apex State Cooperative Banks (StCBs), in a significant move to bolster financial inclusion in these UTs.
This initiative was discussed during a two-day National-level Review Meeting held in Shillong, Meghalaya.
The proposal aims to strengthen the cooperative banking network across India, particularly in under-served regions. Currently, there are no Regional Cooperative Banks (RCBs) operating in Ladakh and Lakshadweep.
The establishment of Apex StCBs in these Union Territories is intended to support and promote the cooperative sector, addressing the financial needs of existing cooperatives through a two-tier structure.
Nationwide, 42 districts lack District Central Cooperative Bank (DCCB) coverage. Among these, 38 districts have branches of the respective State Cooperative Bank (StCB) but no dedicated DCCB, while four districts, one in Uttar Pradesh and three in Jharkhand, have neither a DCCB nor StCB branches.
To bridge this gap, the proposal includes the establishment of 240 new DCCBs, enhancing the cooperative credit network and ensuring financial access across all regions.
As of 31st March, 2023, India’s Short-Term Cooperative Credit Structure (STCCS) comprises 34 State Cooperative Banks operating through 2,102 branches, 350 DCCBs with 13,644 branches, and 1,04,234 Primary Agricultural Credit Societies (PACS) across 34 states and Union Territories.
The proposed expansion is expected to bring uniformity in cooperative credit availability and foster inclusive financial growth throughout the country.
Source: www.indiancooperative.com
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