Officials of cooperative societies told to attract youths for opening SB accounts

Enlist more youths for SB accounts through fair price shops to target younger demographic for DCCBs.

Catch them young!  Officials of the cooperative societies and the managing directors of the District Central Cooperative Banks (DCCBs) have been advised to enlist more youths for opening SB accounts through fair price shops. 

The attempt to target the youth is being made as the authorities have noticed that the average age of customers of the DCCBs is 53. Even though the DCCBs have been in existence for over 110 years (with Salem being the oldest, having been established in 1909), the banks, in recent months, have gained greater experience in having lakhs of SB accounts opened.  After the launch of Kalaignar Mahalir Urimai Thittam (a scheme that provides an assistance of ₹1,000 to women every month) in September last year, 8.2 lakh accounts were opened in the banks to enable the beneficiaries to receive their monthly entitlement, according to the current year’s policy note of the Cooperation Department. 

The DCCBs, which are 23 in number with 924 branches, are providing various banking services on a par with the scheduled commercial banks. The services include core banking solutions, RTGS/NEFT/IMPS, ATMs, RuPay debit cards, internet banking, mobile banking, Aadhaar-enabled Payment System, and e-KYC [electronic Know Your Customer].

At present, the banks, which are confederations of the Primary Agricultural Co-operative Credit Societies (PACCS) with areas of operation in one or more revenue districts, finance the PACCS for share capital, reserves, and working capital, subject to the norms laid down by the Reserve Bank of India and the National Bank for Agriculture and Rural Development (NABARD).  Through the PACCS, they disburse crop loans and animal husbandry loans. During 2023-24, about ₹15,540 crore in crop loans was extended to around 18.4 lakh farmers.  Again, the average age of members of the PACCS is found to be 50. 

Officials of the 34,000-odd fair price shops have been directed to distribute publicity materials and application forms to people for getting the SB accounts opened. At the time of opening the accounts, KYC forms will have to be filled up by prospective customers.  Information on deposit and loan schemes of the DCCBs will also have to be disseminated. Once the accounts are opened, the officials will have to ensure that account opening kits that include ATM cards and the credentials for electronic transactions are delivered to the new account-holders.  An incentive of ₹5 per account will be provided to the officials of the shops.