Page 21 - Banking Finance July 2021

CO-OPERATIVE BANK NEWS

aggregating Rs. 392 crore and Rs. 150 the Primary Agricultural Credit Liberty General Insurance
crore, respectively. Societies (PACS).
ties Up With Maharashtra
Cosmos Co-operative Bank had deposits Shiv Sena, the third MVA constituent,
and advances aggregating Rs. 15,195 and the BJP, the main opposition party Gramin Bank
crore and Rs. 11,503 crore, in the State, don't have a say in DCCBs Liberty General Insurance Ltd,
respectively, as at Marchend 2020. functioning. announced its strategic tie-up with
Three-tier structure Maharashtra Gramin Bank.
Maharashtra govt may Short-term co-operatives are arranged Sponsored by Bank of Maharashtra,

reject RBI's plan on merger in a three-tier structure in most of the Maharashtra Gramin Bank operates in
states, with StCBs at the apex level, Maharashtra with its head office in
of DCCBs with State co- DCCBs at the intermediate level and Aurangabad. It is the largest Regional
operative banks PACS at the grassroots level. Rural Bank (RRB) in Maharashtra and

The MVA Government in Maharashtra In 10 States and four Union Territories, is one of the 43 gramin banks in India
is likely to say "thanks, but no thanks" however, short-term co-operatives supported by the government to bring
to the Reserve Bank of India for its operate through a two-tier structure banking services to rural areas. It
recent guidelines on "Amalgamation of consisting of StCBs at the apex level provides easily accessible banking and
District Central Co-operative Banks and PACS at the field level, according credit services to the rural population
(DCCBs) with the State Co-operative to RBI's 'Report on Trend and Progress through its 412 branches.
Bank (StCB)." of Banking in India'. This partnership will enable distribution

Though RBI unveiled the guidelines to The number of registered insured StCBs of Liberty General Insurance's products
help the States contemplating de- and DCCBs stood at 34 and 347, through Maharashtra Gramin Bank's
layering their Short-Term Co-operative respectively, across the country as at branch network in seven regions of
Credit Structure (STCCS) and their March-end 2021. Maharashtra viz, Aurangabad, Beed,
adoption is voluntary, co-operative and As at March-end 2019, there were Latur, Nanded, Parbhani, Thane and
political circles fear that 'voluntary' about 96,000 PACS. These societies Nashik.
amalgamation could become interface with individual borrowers to Through this association Liberty
'compulsory' down the line when it provide short-term and medium-term General Insurance will offer a
comes to the weaker DCCBs. credit. They also arrange for the supply comprehensive range of relevant
Co-operative sector veterans of agricultural inputs, distribution of general insurance products including
underscored that the Nationalist consumer articles and marketing of health, two-wheeler, and motor
Congress Party (NCP) and the Indian produce for their members. insurance to Maharashtra Gramin
National Congress (INC), two of the Amalgamation Bank's customers.
three main constituents of the Maha The central bank's latest report said Speaking on this occasion Mr. Roopam
Vikas Aghadi (MVA), draw their that after RBI's final approval, 13 out Asthana, CEO & Whole Time Director,
grassroots political power from DCCBs, of 14 DCCBs (except Malappuram Liberty General Insurance said, ''Our
and the BJP-led NDA Government at DCCB) of Kerala were amalgamated partnership with Maharashtra Gramin
the Centre wants to chip away at this. with the Kerala State Co-operative Bank is an important milestone in our
NCP and INC have a vice-like grip on Bank on November 29, 2019. journey to offer our market leading
the functioning of the 31 DCCBs in As per RBI's 2020-21 Annual Report, 'in- products through a trusted partner to
Maharashtra. Some of their Members principle' approval was granted to a crucial segment of our country which
of Legislative Assembly and Members Government of Punjab on June 8, 2020, has traditionally seen low insurance
of Legislative Council are chairpersons for the amalgamation of DCCBs in the penetration. Our alliance with
and Directors on the Boards of these State with the Punjab State Co-operative Maharashtra Gramin Bank will
banks. Bank, subject to fulfilment of conditions spearhead our expansion in
DCCBs mobilise deposits from the stipulated by the RBI and additional Maharashtra and Liberty General
public and provide credit to them and conditions, if any, imposed by Nabard. Insurance Limited is deeply committed

BANKING FINANCE | JULY | 2021 | 21