Role and Importance of the Maharashtra State Co-operative Bank

The Maharashtra State Co-operative Bank occupies a key place in the rural economy of the state, for it is the bank that finally carries national credit down to the village farmer and keeps the whole co-operative structure standing. Its chief contributions are:

• Leader of the co-operative movement — As the apex bank it leads, guides and represents the entire co-operative banking movement of the state, giving it unity and direction.
• Financing agriculture and rural credit — Through the district central banks and the village societies, it channels short-term and medium-term credit to the farmer for seeds, fertiliser and cultivation, and so keeps agriculture going.
• Balancing centre for the state — It moves surplus funds from districts that have them to districts that are short, so that the resources of the whole state are put to their best use.
• Link with the RBI and NABARD — It is the channel through which the refinance of the RBI and NABARD reaches the co-operative structure, multiplying the credit available to the villages far beyond their own savings.
• Supervision and strengthening of the district banks — It inspects, advises and trains the district central banks, helping to keep the whole structure financially sound.
• Promoting the wider co-operative economy — By financing marketing, processing and other co-operatives, it supports co-operative trade and industry, not credit alone.
• Mobilising and safeguarding funds — It gathers deposits from member banks, institutions, government and the public, keeps them safely, and puts them to productive use within the co-operative structure.