Government to revive 23 DCCBs in four states
- The Prime Minister of India Shri Narendra Modi gave a nod to launch a scheme for revival of 23 unlicensed District Central Co-Operative Banks in four states.
- These banks were on the verge of getting closed
- Under the Scheme, the total capital infusion required for revival of these 23 DCCBs would be Rs. 2375.42 crore.
- Out of this amount, Central Government would be contributing Rs. 673.29 crore, State Governments Rs. 1464.59 crore and NABARD Rs.237.54 crore.
- 16 banks in Uttar Pradesh, 3 in Jammu & Kashmir, 3 in Maharashtra and1 in West Bengal would be revived under this scheme.
How will be the scheme implemented?
- The Government’s share of Rs.673.29 crore would be released through NABARD as interest-free loan under Section 27 of NABARD Act, 1981.
- For the purpose of implementation of the Scheme, a tripartite agreement in the form of Memorandum of Understanding (MoU) will be signed between the Central Government, concerned State Government and National Bank for Agriculture and Rural Development (NABARD).
- During the implementation of the Scheme, operations of these 23 unlicensed DCCBs would be closely monitored by NABARD and RBI, so that they meet the licensing requirement within the time frame as prescribed in the Scheme.
Benefits of the revival scheme
- The scheme will result in protecting the interests of depositors and catering to the credit needs of farmers.
- Once revived, these cooperative banks would become eligible for obtaining licenses from RBI for continuing their operations in rural areas and;
- They would also be able to achieve Capital to Risk-Weighted Assets Ratio (CRAR) requirement prescribed by RBI.
- District Central Co-operative Banks(DCCBs)