- Central Financing Agencies Department
The Cooperative Movement in Maharashtra is nurse and nourished by Three Tier Cooperative
Credit Structure, at the helm of which is the MSCB, at the middle level District
Central Cooperative Banks and at the village level Primary Agricultural Cooperative
MSCB is an Apex institution of all District Central Cooperative Banks & Primary
Agricultural Cooperative Societies in Maharashtra State. Central Financing Agencies
Department of MSCB caters to the financing needs of District Central Cooperative
Banks for providing Agricultural and Non-agricultural advances under various refinance
schemes of NABARD. Funds are used to rehabilitate to poor farmers through Primary
Agricultural Cooperative Societies and District Central Cooperative Banks. The loans
are disbursed through the Regional Offices / Pay Offices of MSCB and utilisation
and operations are reported to the department for control purpose. This department
also liasions with NABARD for refinance purpose and with Government for required
Figures at a Glance (31.03.2014)
- Total No. of DCCBs in Maharashtra : 31
- No. of Branches of DCCBs : 3711
- No. of PACS : 21,269
- No. of Members of DCCBs (31.3.2013) : 1,63,131
Credit facilities provided and activities of Central Financing Agencies Department
- Short Term Refinance for Seasonal Agricultural Operations : ST(SAO)
- Medium Term Conversion / Replacement / Reschedulement Loan
- Sugar Repledge to DCCBs against Pledge limit sanctioned to SSKs.
- Refinance against Salary Earners Societies
- Investment Credit (Agri., Agri. allied & Non-agri.)
- Liquidity Credit Support
- Ways & Means Refinance
- Implementation of Govt. (Central / State) sponsored schemes
- Implementation of Prof. Vaidyanathan Committee recommendations
- Guidance & help to District Central Cooperative Banks
- Agro Industrial Co-operative Department
AIC Dept. provides direct finance to co-operative processing units like Sugar Factories,
Spinning Mills, Oil Mills, Marketing Co-operatives and other cooperative Industrial
Units. AIC dept. processes credit requests from sugar and other processing societies,
weavers’ societies, spinning mills besides other apex bodies like Marketing Federation,
Maharashtra State Electricity Distribution Company, Food Corporation of India and
Indian Farmers Fertilizers Co-operative Ltd. etc.
Both Term Loan as well as working Capital loans are sanctioned. The term loans for
period of 5 to 7 years are mainly provided for modernization of sugar units, spinning
units erection of cogeneration projects, distilleries, solar energy projects etc.
The working Capital limits are given to meet the day to day requirements of the
production units. These loans are also disbursed through the Regional / Pay offices
and utilization / operations are reported to the department for monitoring purposes.
Wherever, required stock statements, inspection reports are prescribed and obtained
for supervisory control purpose and ensure proper utilization of funds. Periodical
review submitted to Hon’ble Board of Directors.
The department also takes care of the loan documentation including obtaining of
third party guarantees and creation of charge on the immovable assets as per the
terms and conditions of sanction.
Bank is extending following types of loans based on nature of industry:
- Term Loan
- Working Capital
- Hypothecation Cash Credit
- Pledge Cash Credit
- Clean Cash Credit
- Short Term Loans
- Short Term Loans for off seasonal expenses
- Bank Guarantees
- Pre shipment & Post shipment
- Risk Management Cell
Banking Business is expanding so much in terms of volume & activities that it seems
necessary to analyse & mitigate the various kinds of Risks (Credit, Operational,
Market etc.,) involved in our Bank. Taking into consideration the said risks, our
Bank has formed Risk Management Cell under Agro industrial Co-operative Department.
NABARD had given separate guidelines on Risk Management through its circular dated
24.11.2012, on basis of which our Bank in its Hon’ble Administrative Board meeting
dated 13.12.2012 decided to appoint agency to mitigate risks involved in our Banking
Business. CRISIL was appointed as per decision taken in Hon’ble Administrative Board
- Hon’ble Director Board meeting dated 25.3.2014.
CRISIL will “Review and Design Risk Management Frame Work, Develop Risk Assessment
Module (RAM) Software, Preparation of Process Manual & Standard Operating Procedures,
Training and AMC for 5 years”.
Area to be covered by CRISIL
- Credit Risk
- Market Risk
- Operational Risk Framework
- Compliance Risk etc.
The Chief Risk Officer is appointed as a Head of the cell.
- Project Appraisal & Marketing Department
On account of limitations on extending advances to existing activities and need
to diversify the loan portfolio there was a felt need to develop new products and
borrowers. To address this, Bank formed the Project Appraisal & Marketing Department.
The department will appraise projects received from institutions outside the co-operative
fold such as educational institutions, industrial units etc. and facilitate diversification
of loan port-folio.
- Banking Department
- Clearing :
Responding promptly and effectively to the call of R.B.I. our Bank implemented C.T.S.facility
for own and also for Sub Member Banks at Mumbai, Nagpur, Aurangabad, Nasik, Pune,
Kolhapur and Solapur. As on date we handle 20 to 25 thousand cheque per day. Our
Hon’ble Administrative Board were concern enough to offer such facility to Cooperative
Bank spreaded all over the state that to at least possible charges.
- RTGS-NEFT :
After offering said service through off line to all Cooperative Institution, we
are in process to offer same online by providing ‘Portal’ at all such Cooperative
Institution location in nearest future. Complementing the present process, with
sixteen digits Account No. Total Inward will be automatic and Portals will make
Account operation is self for client.
- Retail Banking :
In view to cater the financial needs of Individuals, Bank ventured in Retail Banking
a decade before, Major scheme are Individual Loans to salaried and self-employed
population for vehicle, consumer and Housing Loan etc. Bank recently launched Gold
Loan Scheme, Mortgage Loan to Individuals & Firms for enhancement of existing business
was introduced recently.
- A.T.M. :
The Bank has acquired membership of National Financial Switch (NFS) from NPCI to
provide ATM services and has installed 2 ATMs (Head Office and Vashi).
- Treasury Department
- Mandatory Function :
Maintenance of minimum Cash Reserve Ratio (CRR) u/s 42 of Reserve Bank of India
Act, 1934 & Statutory Liquidity Ratio (SLR) u/s 24 of Banking Regulation Act.1949
are prime responsibilities of Treasury Department
- Money Market Operations :
The department monitors daily inflow-outflow of funds through current account with
RBI and manage liquidity function of the Bank. Funds required are raised through
CBLO/ Repo surplus if any are invested in CBLO/ Call/ Repo/Inter Bank deposits to
- Dealing in Government Securities & Foreign Currencies :
In line with maintaining adequate SLR, department trades in Government Securities,
on NDS OM for exploring profit making opportunities. Total investment portfolio
stood to INR 10944.13 Cr. as on March 2014 of which INR 5498.78 cr. invested in
Forex desk deals in major foreign currencies to support merchant business & in turn
takes benefit of price fluctuations in the currencies to earn profit.
- Servicing GAHs :
The Bank has 368 GILT Account Holders. Gilt Securities held on behalf of these constituents
is INR 18,322.32 cr. as on 31st March 2014.
- International Banking Division
With the passage of time and to be in tune with the rapidly changing economic scenario,
it was felt that the co-operative sector should not lag behind in foreign exchange
business. To meet this requirement, the bank obtained the “Authorised Dealer’s license”
from Reserve Bank of India, for undertaking foreign exchange business. The International
Banking Division (IBD) of the Bank thus commenced foreign exchange business on 28th
The International Banking Division in accordance with RBI, FEMA, FEDAI directives.
Offers following products to its various constituents and its constant endeavor
shall be to provide them better and faster services.
- Preshipment / Postshipment Credit
- Establishment of foreign letter of credit, payment of bills received on collection
basis ,advance remittance
- Purchase and sale of foreign currency notes
- Receive foreign inward remittances and also effect outward remittances. i.e. Education
Free, Medical Treatment Abroad, Travelling, Maintenance of Family residing abroad,
under Liberalised remittance scheme, etc.
- External Commercial Borrowings (Buyers/ Suppliers credit)
- Foreign cheques collection from customers for credit to their accounts
- Issuance of Demand Drafts in various foreign currencies
- Issuance of Bank Guarantee on behalf of exporters
- Opening of Non Resident Accounts-Non- Resident (Ordinary) Account, Non-Resident
(External) Rupee Account, Foreign Currency Non-Resident Account (FCNR), Resident
Foreign Currency Account, Resident Foreign Currency (Domestic) Account
- Opening of Exchange Earners’ Foreign Currency Account (EEFC)
During the year 2003-04 the Bank installed “SWIFT’ system, to enable quick and safe
communication with overseas banks, thereby providing speedy and better services
to customers. It put the MSCB in line with commercial and foreign banks. We are
maintaining our Nostro Accounts in 4 major currencies abroad i.e. USD,GBP,EURO &
So far, Bank has Relationship Management Application (RMA) with 41 different banks
- Corporate Planning and Institutional Development Department
Corporate Planning and Institutional Development (CPID) Department was formed in
Oct 2007 with a view to suggesting measure to transform the Bank into a vibrant
and strong institution that would lead its client institutions in the process of
economic activities, to achieve socio-economic development through co-operative
This department has two sub-sections
- Management Information System (MIS)
- Policy Section
The Management Information System (MIS)
Functions related to preparation of financial statements, Banks Balance Sheet and
Annual report and submission of all statutory returns to RBI/NABARD, Execution of
Transfer Price Mechanism & has also prepared Business Plan for the period from 2012
to 2017. Our Tax sub-section looks after Income-Tax assessment & Payment of the
Bank, Branches & all tax related matters.
Carry out policy related functions viz. defining mission of the Bank, policy formulation,
preparation of schemes for business and support services, suggest innovations in
systems and do in-depth analyses of problems through research. Further the functions
related to data analysis & interpretation. This section prepares Annual Budget for
revenue and capital expenditure for various section of the bank.
This department is taking constant review of interest rate on Deposits and Loans
& Advances in light of RBI Policy & market situation. This has given positive impact
on banks financial strength. This dept. has also undertaken ALM related analysis
which helps to take the decision at management level. Alco Committee has been formed
to review Assets & Liability of the Bank. Alco Committee meeting is conducted in
Following Policies / Schemes have been formulated by this Dept.
- Refinance to Urban Co-op. Banks for housing purpose.
- Schemes for financing expansion/modernisation of the units out of co-operative fold.
- Risk Management Policy, Credit Policy & Credit Risk Management Policy.
- Co-finance to Urban Co-operative Banks
- Retail Banking Schemes (Revised)
- Policy for extending Loan to Private Sugar Factories
- Policy for Financing in consortium
- Policy for procurement various items for Bank
- Policy for disposing off scrap
- Discounting of electricity supply bills of sugar factories to MSEDCL
- Shikhar Mortgage Loan Scheme for individuals, co-operative institutions & businessmen
- Information Technology Department
Our Bank has implemented and operationalized CBS, since March 2011 successfully.
The Bank has acquired membership of National Financial Switch (NFS) from NPCI to
provided services of ATM and has installed 2 ATMs (Head Office and Vashi). The services
are operational since March 2014. NGRTGS facility will be made available to DCC
Banks which have implemented CBS. CTS has been implemented at Mumbai, Nagpur, Aurangabad,
Nasik, Pune, Kolhapur and Solapur. Bank has well formulated & Board approved I.T.
Policy in existence.
- Internal Audit Dept.
This department undertakes the audit on quarterly basis of all branches, Regional
Offices, Pay Offices and Divisional Offices. A separate arrangement is made for
the internal audit for Nagpur Regional / Divisional Office and Branches under it.
However, test audit of Nagpur RO and its affiliated offices / units are undertaken
yearly by the internal Audit Dept.
The audit of income and expenditure, drawls and balance sheet and its statements
is the prime and main work of this department. The pre-audit of major items of expenditure,
provident fund, gratuity, and income tax, TA / DA etc. is carried out on priority
- Inspection and Audit Dept.
Inspection and Audit Dept. plays the supervisory role over the borrowing units through
the divisional offices by way of inspection & various visits. The observations on
the inspection reports are communicated to concerned units. The Compliance on the
same are obtained timely to exercise control over borrowing units. The Department
also exercises control on field Staff of the Divisional Offices of the Bank by way
of scheduled Inspection program. This facilitates effective check and Control over
all borrowing units, utilization of funds & recovery of loans of the bank and immediate
rectification of observations thereof. Compliance reports on Statutory Audit Report,
internal audit memos and Statutory Inspection Report (NABARD), are also placed before
the Audit sub-committee and BoA-(BoD) for approval and are forwarded to the concerned.
- Department for Institutional Recovery & Revival
With a view to concentrating on effective recovery of the Bank’s credit to borrowing
institutions and for possible revival of the eligible units the earlier Recovery
Cell of AIC Department was converted in to a new and full-fledged Department of
Institutional Recovery and Revival. It carries out the work of assessment of NPA
and provisioning (Initiate legal proceedings for recovery of overdue etc.)
Department looks after the recovery of NPAs; Through SROS (Special Recovery Officers
under MCS Act) & AOs (Authorising Officers under ‘Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act 2002’).
Handles legal proceedings of recovery, attachment & sale of NPA units.
To facilitate recoveries from distressed accounts bank has formulated “Compromise
Settlement Scheme 2012” with consent of Special General Body Meeting held on 08.12.2012.
It has got good response and as on 31.03.2014 INR 111.95 Crore were received under
- Legal Department
The Legal Department is basically working as a Co-ordinator between different offices,
departments, branches etc. of the bank; as well as Advocates & various Courts,
Empanelment of Advocates Review & monitoring of their working & legal cases
etc. is controlled through this Department.
Further, Legal Department provides legal opinions from Advocates/Solicitors, considering
the need & requirements of the bank.
- Urban Co-operative Banks Department
The department’s work relates to financing of the Urban Cooperative Banks. The Refinance
is sanctioned to UCBs against their advances to the members for hypothecation /
pledge of goods and / gold ornaments. In case of finance provided under the special
schemes of NHB, RBI, SIDBI, refinance is availed from the respective agencies.
The various types of facilities provided to the UCBs are as under.
- Cash Credit limit to UCBs against finance to its members (N.O.D.C.).
- Loans to UCBs for purchasing/ construction of H.O./ Branch Building.
- M.T. Finance for Computerization of Head Office and Branches of UCBs.
- Import / Export Business facilities to UCBs through our I.B.D. Department & branches.
- Overdraft (O.D.) facilities against their fixed deposits with our Bank.
- Treasury Department Of MSCB provides facility like sale/ purchase of Government
Securities, Opening CSGL Account to UCBs.
- Refinance to UCBs against its Non Overdue finance to members for Housing purpose.
- Funds of UCBs are transferred through RTGS.
- Refinance under Section 17(2) (b) (b) along with 4 (c) of the RBI Act 1934.
- Finance against SIDBI Refinance Scheme.
- Finance against NHB Refinance.
- Co-finance scheme for Urban Banks to finance their creditworthy clients / Customers.
Urban Banks department is playing very significant role by guiding UCBs on various
issues in day to day working. From the year 2008-09 bank has started system to discuss
financial position, fund requirement, collateral etc., with office bearers and officers
of Urban Banks before sanctioning loans to them. This department consolidates the
statistical information of the UCBs in the state and circulates it among member
- Human Resource Development and Management Department
Against the backdrop of the stiff competition in the banking sector, the management
of MSCB felt the need to develop professional outlook of the employees towards work
and thereby prepare them for the challenges of the future. As a result, a comprehensive
‘Human Resource Development and Management Policy’ was put in place, on November
All the working of the HRDM is going on as per policy. But time to time it has to
make some necessary changes, considering the needs of the bank with approval of
Hon. Board of Administrators. It takes care of Transfer/Promotion/Training needs
Preparation of Staffing Pattern for the period 2014-2019, consisting Study Work
Load, Staff Strength, Evaluation of Training Requirements of the staff and Redesign
the Organisational Structure, Grade Wise Job description and Responsibilities and
suggesting changes in H.R. Application Software job is in under process by appointing
- Training facilities - Shikhar Training & Research Institute
Shikhar Training & Research Institute was started by our Bank on 16-12-2009
as a part of its role to provide need based training in another banking practice
to the Co-op. Credit Structure in the State. The Institute, therefore, is working
as State Level Agriculture and Cooperative Staff Training Institute (ACSTI) under
SOFTCOB – Scheme of Financial Assistance for Training of Coop. Banks introduced
in Bank’s own premises. ‘Shikhar’ Vashi imparts training of General Banking &
Our Nagpur’s Staff Training Center was taken under the arm of Shikhar Training &
Research Institute, Vashi & called as ‘Shikhar Training & Research Institute,
Nagpur Center’ which imparts training to STCCS of Vidarbha region in General Banking.
Looking to the increasing use of Information Technology in Banking, our bank has
set up a Computer Lab at Vashi Center in which full-fledged Computer Training is
being conducted. A part from this ‘Shikhar’ conducts training programs for DCCBs
at their locations.
During the 2013-14, both the Vashi and Nagpur Channels together had conducted 61
Training Programs, covering 1088 Officers /Staff.
The two Knowledge Management Centers at Vashi and Nagpur are serving the needs of
‘SHIKHAR’. At present, these have 8874 books and 55 periodicals available for references
The STRI has its own library which have various books, periodicals and magazines.
At present it has got more than 700 books related to Banking and Cooperatives. Besides
this, the participants are provided newspaper on daily basis during training period.
It has also got a Television Set installed to provide latest updates to the participants.
Air–conditioned Hostel facilities for 29 trainees at a time, have also been provided.
The classroom at STRI is well equipped with a computer and projector installed for
conducting training sessions with the help of Audio Visual Media. It has also got
an Internet Connection. The classroom got the capacity of accommodating 30 to 35
- Functions of R.Os, P.Os and D.Os
With a view to facilitating disbursement of loans to District Central Co-op. Banks,
Urban Co-op. Banks. Co-operative sugar factories, Co-operative spinning mills and
other co-operatives in the State and to exercise effective control and supervision
over loan account operations, the bank has been functioning through its 4 Regional
Offices, 2 Pay Offices and 8 Divisional Offices. The Bank has 28 Branches in Mumbai,
1 in Navi Mumbai, 11 in Nagpur and 1 each at Aurangabad, Akola and Amravati.
Our bank has set-up 8 Divisional Offices which have a supervisory role over the
borrowing units in the respective territory / region. They are basically controlling
machinery for inspection & effective loan recovery, which are located at Pune, Kolhapur,
Nasik, Vashi, Aurangabad, Nanded, Nagpur and Amravati. The inspection program is
prepared by them on half-yearly basis and sent for approval to HO. After HO approval,
the monthly tour programs of the inspection machinery is prepared and executed.
The inspection reports of the Divisional Officer and Inspecting Officers are sent
to the inspection and Audit Department at Vashi where the scrutiny is done and the
observations are communicated to the concerned units. Based on these observations,
Bank takes corrective measures for recovery of loans. Loan Proposals are also scrutinised
at Divisional Office level.