Maharashtra government had launched Pandit Deendayal Upadhyay Credit Society Deposit Protection Scheme 2023 to protect deposits of upto Rs. 1 lakh in cooperative credit societies. Under this scheme, the state govt. will safeguard fixed deposits of middle and lower-middle-class depositors in various rural credit societies. This scheme will follow the lines of similar protection offered to depositors of commercial banks.
Cooperation minister has made announcement to roll out this Pandit Deendayal Upadhyay Credit Society Deposit Protection Scheme after holding a meeting with representatives of cooperative credit societies. This scheme will provide deposits protection upto Rs. 1 lakh. Former CM Devendra Fadnavis had launched this scheme on 25 September 2018 as this was a long term demand of credit societies. It follows the lines of Reserve Bank of India’s scheme for urban cooperative banks.
Pt. Deendayal Upadhyay Credit Society Deposit Protection Scheme
The important features and highlights of this Pt. Deendayal Upadhyay Credit Society Deposit Protection Scheme are as follows:-
- This scheme will protect deposits of upto Rs. 1 lakh in cooperative credit societies in the state of Maharashtra.
- There are a total number of 8,421 credit societies in the state with total deposits amounting upto Rs. 40,000 crore. This scheme will provide additional protection to these deposits.
- Fixed deposits of middle and lower middle class depositors will be safeguarded in these rural credit societies.
- If any society faces financial crisis or goes into moratorium period, then the depositors will still get their money back upto Rs. 1 lakh.
- Credit societies were demanding this protection for a long time which was started by former CM Devendra Fadnavis on 25 September 2018. Similar protection is already available for deposits of upto Rs. 5 lakh in banks.
This type of protection is given to urban cooperative banks by RBI’s Deposit Insurance and Credit Guarantee Corporations. This scheme of state govt. will remain applicable to urban, rural (non-agricultural), women and salaried cooperative credit societies.
Credit societies functions as micro-finance institutions and serves lower middle class, small shop owners and labourers, who falls in lower-income groups. The state govt. will invite application forms from credit societies to participate in the Pandit Deendayal Upadhyay Credit Society Deposit Protection Scheme.