In a significant move to strengthen the cooperative banking network, the Gujarat state cabinet has given its nod for the creation of nine new District Central Cooperative Banks (DCCBs). The decision was taken during a cabinet meeting held on Wednesday.
Cabinet Nod and Next Steps
The state government, as confirmed by its spokesperson Jitu Vaghani, will now forward a formal proposal to the Reserve Bank of India (RBI) through the National Bank for Agriculture and Rural Development (NABARD). Following this submission, the necessary legal procedures for the establishment of these new financial institutions will be undertaken.
Districts Set to Get New Banks
The nine districts identified for the new DCCBs are Dahod, Aravalli, Tapi, Chhota Udepur, Devbhumi Dwarka, Porbandar, Anand, Dang, and Navsari. This expansion is part of a broader, special initiative led by the Union Ministry of Cooperation aimed at widening the reach of cooperative banks across India.
"As part of this initiative, a note was presented to the Union cooperation ministry for the establishment of new DCCBs in Gujarat," stated spokesperson Vaghani.
Formation Through Division of Existing Banks
The new banks will not be built from scratch but will be formed by dividing the operational areas of existing cooperative banks. This strategic restructuring is designed to bring banking services closer to people in these specific districts.
The planned divisions are as follows:
- The new bank in Dahod district will be created from the division of the Panchmahal Bank.
- Aravalli district's bank will be formed from Sabarkantha Bank.
- The Tapi district bank will emerge from Surat Bank.
- Chhota Udepur will get its bank from Vadodara Bank.
- Devbhumi Dwarka district's new institution will come from Jamnagar Bank.
- The Porbandar bank will be formed from Junagadh Bank.
- Anand district will see a new bank created from Kheda Bank.
- Both Dang and Navsari districts will get their banks through the division of the Valsad Bank.
This expansion of the District Central Cooperative Bank network is expected to enhance credit flow, support agricultural activities, and boost financial inclusion at the grassroots level in these regions of Gujarat.
