Union Home and Cooperation Minister Amit Shah urged District Central Cooperative Banks (DCCBs) and State Cooperative Banks to increase their deposit base, which would significantly strengthen them.
He emphasized that this goal could be achieved by adopting the “Cooperation Among Cooperatives” model.
He explained, “If respective district cooperatives open their accounts in their respective district cooperative banks, it will be easily achievable. This model was successfully implemented in Gujarat, where deposits increased by 20 percent “he said.
As of now, a total of Rs 4,33,000 crore is deposited in District Cooperative Banks, while Rs 2,42,000 crore is deposited in State Cooperative Banks. “We should also set a target to increase these deposits,” Shah said.
“If all the cooperative bodies open accounts with their District Cooperative Banks, there will automatically be a 20% increase in low-cost deposits. When low-cost deposits increase, profits will also rise, and the capacity to give loans will expand” he remarked.
He encouraged every District Cooperative Bank to adopt this model to enhance its strength and confidence. “Today, the profit of State Cooperative Banks is around Rs 2,400 crore, while the profit of District Cooperative Banks stands at Rs 1,881 crore. We should set targets for growth in this area as well,” Shri Shah added.
