District Co-operative Central Banks (DCCB) 🌾

Position: DCCBs form the middle tier of the 3-tier Co-operative Credit Structure in India.

1. State Co-operative Bank (StCB) - Apex Level (State).
2. District Co-operative Central Bank (DCCB) - Intermediate Level (District). ⬅️ (We are here)
3. Primary Agricultural Credit Societies (PACS) - Base Level (Village).

Jurisdiction: Operates within a district.

Functions of DCCB 🛠️

1. Financing PACS (Primary Societies) 🚜

• DCCB acts as a "Central Bank" for PACS.
• It lends money to PACS in villages.
• PACS then lend to individual farmers.

2. Balancing Center ⚖️

• Collects surplus funds from some PACS.
• Lends to other PACS facing shortage.
• Balances funds within the district co-operative movement.

3. Banking Services to Public 🏦

• Accepts deposits from public (Savings, FD).
• Provides loans to individuals (non-agricultural).
• Offers locker, draft, and remittance facilities.

4. Supervisor 👮

• Supervises the functioning of PACS in the district.
• Guides them on banking practices.

5. Link 🔗

• Acts as a link between the State Co-operative Bank (Apex) and PACS (Village).
• Flow of credit: RBI/NABARD → StCB → DCCB → PACS → Farmer.

Sources of Funds 💰

1. Share Capital: Contributed by PACS and individuals.
2. Deposits: From public and member societies.
3. Borrowings: From State Co-operative Bank or NABARD.

Problems Faced by DCCBs ⚠️

1. High NPAs: Farmers often default on loans (crop failure/waivers).
2. Political Interference: Management often influenced by local politics.
3. Lack of Professionalism: Staff may not be as trained as commercial banks.
4. Dual Control: Regulated by RBI (Banking) AND Registrar of Co-operative Societies (Management). Causes confusion.

Quiz Time! 🎯

💡 Final Wisdom: "DCCBs are the bridge that carries money from the city vaults to the village fields." 🌉🚜

Next up: Contemporary Banks - Small Finance & Payments Banks! 🆕