.

RATIVE CREDIT AND BANKING

District Central Cooperative Banks

vailable to DCCBs can be broadly divided in to two categories,

:md external. The internal resources consist of share capital
DCCB from its constituents and the different reserves build
er of years in the past. The external resources consist of
n other credit institutions
like RBI, NABARD, State
c, Government, deposits from the members and the public,
other cooperatives.

Statutory

101

Reserve Fund

Bad and Doubtful Debt Reserve

Other

reserves

like Agricultural

Credit

Stabilization

Fund,

Common Good Fund, etc.

Statutory Reserve Fund:

Reserve fund with paid up share capital

ance the maximum borrowing power of the DCCB from Apex financing
,ney. Reserve Fund to the tune of 25%, Bad and Doubtful Debt Reserve

s are important to a DCCB not only because a part of them

br 'lending but the ability to borrow also rests on this capital
im borrowing power of a DCCB usually fixed under its byelaws
; owned funds. The SCBs would require the DCCBs to invest
3.1, a certain percentage of their borrowings. Owned funds
by building of reserves through appropriation
of profits,
oldings to borrowings and contribution to the share capital
rnrnent.

ally at 15%, Agricultural

Fund and Common Good

.dnormally at 10% are kept out of net profit in various States. The details
;tatutory Reserves from 1998-99 to 2007-08 is given in Annexure 11.

Bad and Doubtful Debts Reserve: Most of the DCCBs maintain bad
,d doubtful debts reserve.

The main object of maintaining

this reserve is to

at the disposal of the bank funds from which bad debts can be written off.
Agricultural
'cultural

led societies and individual members subscribe the share

Bs. The face value of the share varies from Rs.50 to Rs.100.
s of the bank the members have to subscribe shares in
iir borrowings.
The Mehta Committee on Cooperation
the primary credit societies should be required to contribute
I of DCCB at the rate of 1/20lh of their borrowings. However,
isted that the DCCB should collect share capital from the
% of their borrowings. Share capital carries no interest as
vidend at the prescribed rate has to be paid as and when

Credit Stabilization

Credit Stabilization

Credit

Stabilization

Fund

Fund:

The main objective of

(ACSF) is to make use of it for

:version of short term loan into medium term loan where the crops of the
ers are affected
'.litthquake,
'8

etc.

by natural

calamities

like drought,

The DCCBs were able to constitute

only at the end of 1981-82.

famine,

flood,

this fund for Rs.46.93

The position of the reserves

had been

asing in the recent years as many of the DCCBs started providing various
't facilities

to the affiliated

societies.

The position

-93 was Rs.142.85 crores, which was increased

of ACSF during

to Rs.557.41 crores in

1 and reached Rs.1185.88 crores during 2007-08. The details of ACSF

1998-99 to 2007-08 is given in Annexure 11.

her Reserves

The details of owned funds and working capital of the DCCBs from
I

are the main statutory

reserves maintained

by the central

99 t o 20 07-08 are furnished below: