Functions of the Maharashtra State Co-operative Bank

As the apex bank, the MSC Bank performs the ordinary functions of a bank and the special functions of a leader and balancing centre for the whole co-operative structure. Its functions may be grouped as follows.

A. Financing the co-operative structure (its central function).

• Providing finance to district central co-operative banks — Its chief work is to supply short-term and medium-term funds to the DCCBs, which in turn finance the village societies and the farmer. In this way it keeps credit flowing to the base of the pyramid.
• Acting as a balancing centre for the state — It moves surplus funds from districts that have more than they need to districts that are short, so that the resources of the whole state are used to the best advantage.
• Providing finance for co-operative activities — It also finances marketing societies, processing and industrial co-operatives, and other co-operative bodies, thereby supporting the wider co-operative movement.

B. Ordinary banking functions.

• Accepting deposits — It receives deposits from its member banks, from co-operative institutions, from the government, and from the public — in current, savings and fixed forms.
• Granting loans and advances — Out of these funds it lends, mainly to the district central banks and co-operative institutions.
• Agency and general utility services — Like any bank, it collects cheques and bills, remits and transfers funds, issues drafts, and provides other ordinary banking services to its members.

C. Link, leadership and supervisory functions.

• Link with the RBI and NABARD — It borrows refinance from the Reserve Bank of India and NABARD and passes it down to the district banks; it is the point of contact between the national institutions and the co-operative structure of the state.
• Supervision and guidance — It inspects, guides and advises the district central banks, helps them frame sound policies, and works to keep the whole structure financially healthy.
• Training and development — It arranges training for the staff of co-operative banks and takes up schemes for the development and strengthening of the co-operative movement. …