Short Term Rural Cooperative Credit Structure (STCCS):

  • Three- tier structure of (STCCS)
    • State Cooperative Banks (StCBs) at the state level,
    • District Central Cooperative Banks (DCCBs) at the district level, and
    • Primary Agriculture Credit Societies (PACS) at the village level.
  • The objective of this model:
    • To provide timely, adequate, and affordable cooperative credit to the farmer members, and
    • To realize social, economic, and political objectives ranging from self-help and grassroot level community participation to production, distribution, and social control over resource allocation and mobilization.

Issues and Challenges of Cooperative Credits:

  • The gradual institutionalisation of rural credit witnessed the presence of several commercial banks and microfinance institutions operating through cutting-edge technologies.
  • The rural banking space has become tremendously competitive for cooperatives.
  • The cooperative credit institutions could not compete due to their inability to adopt technology enabled solutions.
  • The most common issues are ensuring good office management systems, transparency, good governance and professionalisation, product innovation speed, service delivery, etc.

ECOBANet: Ernakulam Cooperative Bank’s Network:

It is an integrated technology platform of Ernakulum District Central Coop. Bank (EDCCB) located at Kochi.

Functions and Features:

  1. Brings all credit institutions affiliated to EDCCB on a common tech-based platform. 
  • Allows grassroot member institutions PACS to provide modern banking services to the members on a real time basis. 
  • Function as technology driven financial service providers whereby, they deliver a range of services to their members.
    • Example: Direct Benefit Transfers (DBTs), RuPay Cards, RTGS / NEFT, mobile passbook services, e-commerce services, and account opening services. 
  • Allows members to open Aadhaar enabled savings bank and KCC accounts at PACS level itself with real-time monitoring at the DCCB level. 

Conclusion:  Digitisation calls for a complete transformation of the agriculture credit system so that cooperative credit activities are aligned with national priorities such as financial inclusion, sustainable agriculture, and the enhancement of farm incomes.

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