“This was a crucial and historic decision taken in the interest of the farmers,” Chief Minister Raman Singh
said after the state cabinet approved the proposal today. The merger of DCCBs
into a single entity would serve the farmers with better and efficient banking facilities, he added.
The decision would enable small DCCB to merge
into the state cooperative bank that would ensure the fiscal strength of the entity. After the merger, the working capital of the bank would increase to more than Rs 10 crore. This would help the farmers to get more loans from the banks.
Singh said the cooperative banks
had been playing a significant role in the paddy procurement and disbursements of short term agricultural loans to farmers. The banks had been disbursing about 90% of the total loans in the rural areas and among the farmers.
“The decision of merger was a major banking reform in the state that would provide modern banking services to the farmers even in the rural areas,” Singh said, adding that the Automated Teller Machine (ATM) and mini ATM network would be expanded in the interior areas following the cooperative banking reform.
The state cooperative banks
would soon introduce the internet and mobile banking for its customers.