Central Financing Agencies

Central Financing Agencies Department

Central Financing
Agencies

The Cooperative Movement in Maharashtra is nurse and nourished by Three Tier Cooperative Credit Structure, at the helm of which is the MStCB, at the middle level District Central Cooperative Banks and at the village level Primary Agricultural Cooperative Societies.

MStCB is an Apex institution of all District Central Cooperative Banks in Maharashtra State. Central Financing Agencies Department of MStCB caters to the financing needs of District Central Cooperative Banks for providing Agricultural and Non-agricultural advances under various refinance schemes of NABARD. Funds are used to rehabilitate to poor farmers through Primary Agricultural Cooperative Societies and District Central Cooperative Banks. The loans are disbursed through the Regional Offices / Pay Offices of MStCB and utilisation and operations are reported to the Deptt. for control purpose. This department also liasions with NABARD for refinance purpose and with Government for required guarantee.

31+

Total No. of DCCBs in Maharashtra

3667+

No. of Branches of DCCBs

21256+

No. of PACS

Credit facilities provided and activities of Central
Financing Agencies Department

C. Product Details

Short Term Refinance for Seasonal Agricultural Operations ST(SAO)
Medium Term Conversion/Rephasement/Reschedulement Loan
Schematic lending-Investment Credit (Agri., Agri. allied & Non-agri - LTRCF)
Sugar Repledge to DCCBs against Pledge limit sanctioned to SSKs:
Refinance against Salary Earners Societies
Ways & Means Refinance

Direct refinance to PACS through DCCBs

Implementation of Govt. (Central / State) sponsored schemes:
1. World's Largest Grain Storage Plan (WLGSP)
2. Centrally sponsored Scheme - PACS Computerization Project
Guidance & help to District Central Cooperative Banks (Conference, Seminars &Workshops)
Obligor Rating – MStCB newly developed Risk Assessment Module for Obligor Rating (OR Rating) of DCC Banks.

Objective : To provide crop loan facilities at the grassroots level through a 3-tier cooperative credit structure: MStCB → DCCB → PACS
Limit : The Short-Term (SAO) Refinance facility is extended under the NABARD Refinance Scheme. NABARD issues an annual policy circular for the sanction of ST (SAO) Refinance to State Cooperative Banks (SCBs). For FY 2024–2025, the applicable policy is NABARD Circular No. 194 dated 23 September 2024.
Security : Pronates (promissory notes) issued by PACS and endorsed by the DCCB in favour of MStCB.
Tenure : One year
Rate of Interest : As per prevailing interest rates

If the DCCB maintains a minimum 50% CRR (Cash Reserve Ratio) with MStCB, an interest rebate of 0.50% will be refunded by MStCB.

Objective : Conversion of Short Term Agri. Loan (SAO) into Medium Term Loan. Refinance facility is provided under NABARD Refinance Scheme, under occurrence of Natural Calamities.
Limit : M.T. conversion limit comprises share of NABARD 60%, State Govt. 15%, DCCB 15% & MSCB 10%. NABARD issues policy circular for every financial year. (NABARD Policy for 2021-2022 No.132 dated 10 June 2022).
Security : Pronotes of PACS endorsed by DCCB in favour of MSCB
Period : 3/5/7 years
Rate of Interest : As per prevailing interest rates

Objective : Term loans are sanctioned for Agri., Agri-allied & Non Agri. purposes other than crop loan
Limit : Refinance is sanctioned under NABARD investment credit policy. NABARD issues policy circular for every financial year.
1. NABARD Policy for the year 2023-24 No.164 dated 31 July 2023.
2. NABARD Policy for providing Investment Credit under Long Term Rural Credit Fund for 2023-24 No.246 dated 24 November 2023.
Security : Pronotes of PACS endorsed by DCCB in favour of MStCB.
Period : 3 to 15 years.
Rate of Interest : As per prevailing interest rates

Objective : MStCB provides Sugar Repledge to DCCB's against the pledge limit sanctioned by DCCB to sugar factories

Maximum Limit : 80% of Pledge limits sanctioned by DCCB's to sugar factories

Margin : 20%

Security : Repledge of sugar stock pledged by sugar factories with DCCB

Period : One years

Rate of Interest : As per prevailing interest rates

Objective : MStCB provides Refinance facility to DCCB's against finance provided / to be provided by DCCB to Salary Earners Societies

Maximum Limit : 80% of Non-overdue outstanding of limit sanctioned by DCCB to Salary Earners Society (Classified as A, B, C).

Margin : 20%

Security : Non-Overdue Cover Statement of DCCB

Period : One years

Rate of Interest : As per prevailing interest rates

Objective : MStCB provides Refinance facility to DCCB's in the form of Ways & Means advance, to help maintain prescribed liquidity levels.

Maximum Limit : As required to maintain prescribed liquidity

Margin : 20%

Security : Promissory Notes. Joint & Several Liability Bond of Board of Directors of DCC Banks

Period : Flexible up to one year

Rate of Interest : As e per prevailing interest Rates

Maharashtra State
Co-operative Bank Ltd.