State stuck with only nine DCCBs

Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) guidelines have become hurdles for the TRS government to set up district cooperative central banks (DCCBs) in the new districts.

After reorganising the number of districts from 10 to 33, the government had established Zilla Parishads for every district. The state government also wanted to set up DCCBs in every district and asked the officials to work out a road map.

However, with the bifurcation of the erstwhile districts into 33, the new districts have become very small. Each of the old districts was divided into three to four districts.

On the direction of state government, the

Telangana State Cooperative Central Bank began the exercise of setting up DCCBs in every district but ran into a wall. The officials told the government that it was not possible because of the norms of the RBI and Nabard. They said the turnover of the DCCB in the small districts will be very less. This will not be viable as per RBI and Nabard guidelines.

They suggested that the present nine DCCBs be continued with.

For political advantage, the state government had thought of setting up separate DCCBs for the new districts. It would help the ruling party to accommodate some more party leaders as DCCB chairpersons and vice chairpersons. After the report of the officials, the government has decided to continue with the existing nine district cooperative banks.