New co-op policy calls for apex bank for sector

The new national policy on cooperatives has called for an apex cooperative bank to enhance collaboration among various tiers of cooperative financial institutions while preserving the three-tier credit structure of Primary Agricultural Cooperative Societies (PACS), District Credit Cooperative Banks (DCCBs) and state cooperative banks to provide affordable credit.

- SANJEEB MUKHERJEE

At present, RBI has the regulatory control over all cooperating banking institutions. But non-banking cooperative societies, such as thrift credit societies, work within the oversight of the respective state registrar of cooperatives.

"This (the apex national cooperative bank) is meant to harness their true potential and to provide support, capacity building, professionalism and business opportunities," the policy released by Union Home and Cooperative Minister Amit Shah on Thursday said.

PACS operate at the panchayat or village levels, DCCBs at the districts and state cooperative banks at the state levels.