The cash-strapped 10 district central cooperative banks (DCCBs) will now be able to actively participate in the kharif loan disbursement in addition to the government's Rs 34,000 crore crop loan waiver scheme. This is possible as these banks will get the refinance from the Maharashtra State Cooperative Bank (MSCB) after the state government has agreed to provide a guarantee to MSCB. Of the total 31 DCCBs, 10 DCCBs have incurred a loss of Rs 1,315.04 crore while 21 have earned a profit of Rs 506.99 crore as on March 31, 2017. The list of 10 DCCBs with their loss include Wardha (Rs 380.86 crore), Buldhana (Rs 247.71 crore), Nagpur (Rs 211.11 crore), Nanded (Rs 134.85 crore), Nashik (Rs 120.50 crore), Jalgaon (Rs 82.79 crore), Solapur (Rs 61.56 crore), Jalna (Rs 45 crore) and Osmanabad (Rs 30.52 crore). These banks had expressed their inability to provide a fresh loan during the current kharif season and also participate in the crop loan waiver scheme due to a severe liquidity crunch and the possession of banned notes. However, with the government's recent decision, these banks will now be able to deposit banned notes with Reserve Bank of India and in turn get new currency. A state cooperative department officer told DNA, "The government's move to give guarantee to MSCB is quite crucial, especially for 10 loss making DCCBs to lend an agriculture loan during the current fiscal. The government guarantee to MSCB, and not individual banks was necessary as MSCB provides refinance to all 31 DCCBs who later lend to farmers.'' The officer hopes that these banks will now be able to recover their dues from debt ridden farmers who are expected to benefit from the one time settlement scheme for the loan exceeding Rs 1.50 lakh. The state government, during the recent meeting of State Level Bankers Committee (SLBC) has set the target of agricultural loan at Rs 54,000 crore for the current fiscal. Of this, 31 district central cooperative banks are expected to disburse Rs 17,000 crore and the balance Rs 37,000 crore by the private and nationalized banks. ANALYSIS District Central Cooperative Banks play a major role in providing credit to the farm sector. The state government's move to provide guarantee to the apex bank, the Maharashtra State Cooperative Bank will open a refinance window especially for 10 loss making DCCBs who face liquidity crunch. They also bear additional burden of possession of banned notes. The refinance will come handy for these banks to disburse kharif loan and also fresh loan under the Rs 34,000 crore Chattrapati Maharaj Krishi Sanman Yojana. Besides, these banks will also get new currency after exchange of banned notes with RBI by end of July. The onus now lies on these banks to expeditiously recover pending dues from the farmers and restore their finances .

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