District Central Co-operative Banks

About District Central Co-operative Banks (DCCBs):

• A DCCB is a rural cooperative bank operating at the district level in various parts of India.
• It is established to provide banking to the rural hinterland for the agricultural sector, with the branches primarily established in rural and semi-urban areas.
• DCCB provides finance to all the co-operative societies in the district, conducts activities, and provides banking services according to the provisions of the co-operative act and banking act.
• They act as a link between the primary credit co-operative society and the State Co-operative Bank.
• At the district level, DCCB works as a banker of state government. Educational institutions, Zilla Parishad, Panchayat Samiti, Gram Panchayat, cooperative societies, etc have accounts in this bank.
• All the financial transactions of co-operative sector are conducted through DCCB.
• DCCBs have three sources of funds:
  • Their own share capital and reserves
  • Deposits from the public and
  • Loans from the state co-operative banks
• The main functions of the DCCBs are
  • To meet the credit requirements of member-societies
  • To perform banking business
  • To act as a balancing centre for the Primary Agricultural Credit Societies (PACS) by diverting the surplus funds of some societies to those which face shortages of funds
  • To undertake non-credit activities
  • To maintain close and continuous contact with PACS and provide leadership and guidance to them
  • To supervise and inspect the PACS and
  • To provide a safe place for the investment of the resources of PACs
  • They also lend directly to the public for non-agricultural purposes within the area of operation of their branches.