Raipur, July 12: In a major decision aimed at benefiting farmers, state government has decided to merge all regional Co-Operative Banks into a mega State Co-Operative Bank. State Cabinet approved the re-organization yesterday. The 264 branches however will remain functional and will here on work as Scheduled Co-Operative Banks.
Explaining logic behind the merger of all District co-operative banks into a single state-level bank, Chief Minister Raman Singh said, it will help in reducing the interests on farm loans by upto 2 percent. Farmers will get modern facilities including core-banking, mobile and internet banking. There will be expansion of ATMs and micro-ATMs as well”, he added.
The decision was taken keeping in mind the decisive role played by the banks in distributing loans and payments of agriculture produce. The small and minor District Co-Operative Banks will be merged into a State-level Co-Operative Bank, Singh said.
Dr. Raman Singh added that customers and farmers will be benefitted. The farmers can avail of the facilities in any branch in the State. Mobile Banking and Internet banking will be provided to the farmers. The working capital after merger will be around Rs 10 thousand crore.
There will be more funds to give loans to farmers. New bank branches will be opened where there are no facilities at present. There will be faster disbursement of mid-term and long-term loans to farmers, he informed.
The Co-Operatives banks are considered as farmers' banks. Ninety percent loans are allocated to the farmers by these banks. It may be mentioned here that four banks had merged into State Bank of India and 05 Regional Rural Banks merged into Chhattisgarh Grameen Bank recently.