Introduction
- Cooperative banks that are operating at the district level in various parts of India are known as District Cooperative Central Banks (DCCB).
- It was established with the main of providing banking facilities to the rural livelihoods especially in the agriculture sector.
- Therefore, the branches were primarily established in the rural and semi-urban areas.
- The District Cooperative Central Bank (DCCB's) have three primary sources of funds:
- DCCBs own share capital and reserves,
- Deposits from the public, and
- DCCBs loans from the state co-operative banks.
Model
Banking Model:
- The Banking model typically consists of a district central bank to be established in each district of every Indian state.
- Collectively, these banks shall be represented by a State Apex Central Cooperative Bank that is established for each state. This shall act as an apex body for the DCCBs.
- The President of the DCCB is elected by its members and elected directors who represent a multitude of professional cooperative bodies. The bodies include; milk unions, rural cooperatives, urban cooperatives, agricultural and non-agricultural cooperatives.
- Trends from the past few years reveal that the local politicians get elected as the president. They hold sway over the cooperatives and getting elected help to nurture their political ambitions.
- Besides, the banks have a few private individuals who provide finance and management.
Functions
Functions of DCCB:
- DCCBs meet the credit requirements of member societies.
- They shall also perform the banking business and provide facilities relating to it.
- DCCBs act as a balancing center for Primary Agricultural Credit Societies (PACS). This is done by diverting the surplus funds of some societies to those who face shortages of funds.
- DCCBs can also perform non-credit activities.
- DCCBs maintain close and continuous contact with the PACS. This means they shall provide leadership and guidance to them.
- Further, DCCBs supervise and inspect PACS such that a safe place is provided for the investment of the PACS resources.
DCCB Board
Board of DCCB:
- The Board of District Cooperative Central Bank comprises of:
- Elected Chairman of the PACS,
- Representatives of the State Government, and
- Representatives of the State Cooperative Bank.
- The board periodically reviews the performance of the bank. This is essential for the board to provide a policy.
- DCCBS performs its functions under the administrative control of the Registrar of the cooperative societies. Therefore, the government is an important stakeholder.
Inspection
- All DCCBs are registered under the Banking Regulations Act. DCCBs are expected to follow relevant provisions of the Act.
- The regulatory control of DCCBs is held by the Reserve Bank of India (RBI).
- DCCBs are subjected to the periodical supervision. This ensures that they shall function following the provision of the law and with prudence.
Loans
Loans & Advances:
1. Short Term Production Loans: These loans are extended for raising the crops and are routed through PACS.
- The Government of India has introduced the subvention scheme. Under this scheme loans up to INR 3 lakhs are granted.
- These loans are extended to farmers at an interest rate of 7 percent.
- The government of India provides an interest subsidy of 2 percent to the banks also.
- Short-term credit is made easy, convenient, and flexible for the farmers.
- It requires only one-time documentation.
- There is a single limit for whole years requirement.
- Users are granted any number of drawls and repayments.
- If the account is regular, there is a facility of automatic renewal.
- Besides, there are additional features like personal accident insurance. This is provided through collaboration with insurance companies.
- The term loans are delivered either through the PACS or directly to the farmers by DCCBs.
- Higher lending agencies like NABARD offer DCCBs an option to refinance. These higher lending agencies can channelize these funds through the State Cooperative Banks.
- Term loans can be granted for numerous purposes like excavation of wells, purchase of pump sets, horticulture, rural transport, animal husbandry, and other farming equipment.
Recruitment
- Each District Cooperative Central Bank issues its vacancy through a notification. Usually, posts are for Staff Assistant and clerks. Candidates must apply within the given period.
- Candidates who aspire to apply for these DCCBs posts must be graduate in any discipline from a recognized university and know English with proficiency in the local language.
- The candidates who wish to apply for any of the posts must be with the age group of 18 to 30 years.
- However, there is some relaxation provided for SC/ST/OBC/PWD and women candidates.