Functions of a District Central Co-operative Bank

The functions of a DCCB are of two kinds: the special functions it performs as the central financing agency of the district's societies, and the ordinary functions it performs as a bank. Both flow from its middle position.

A. As the central financing agency of the district (its special functions). These are what make a DCCB different from an ordinary bank.

• Financing the primary societies — Its foremost function is to lend to the primary societies of the district for their own lending to members — short-term crop loans for seed, fertiliser and cultivation, and medium-term loans for pumps, bullocks, small implements and the like. The society borrows from the DCCB and lends onward to the individual farmer.
• Acting as the balancing centre — It takes the surplus funds of societies that have spare money and lends them to societies that are short of money, so that resources are moved within the district from where they are idle to where they are needed. This is its role as the balancing centre.
• Supervising and guiding the societies — It watches over the working of its member societies, inspects their accounts and lending, and guides them on sound business, helping to recover overdues and keep the societies healthy.
• Linking the primary societies with the apex bank — It connects the village societies with the State Co-operative Bank and, through it, with NABARD and the RBI, drawing refinance from above and passing it down to the base.

B. As a bank (its ordinary banking functions).

• Accepting deposits — It receives deposits from its member societies (chiefly their surplus funds, which societies are often required to keep with the DCCB), and also from individuals and the public, in the usual forms — current, savings, fixed and recurring deposits.
• Granting loans and advances — Besides financing societies, it lends to individuals and other borrowers for productive purposes, through term loans, cash credit, overdraft and the discounting of bills.
• Agency functions — Acting as an agent of its customers for a small commission, it collects cheques, bills, dividends and interest, makes periodic payments on standing instructions, and transfers funds. …