Kokata: The recent hike in CRR by the Reserve Bank of India (RBI) has rekindled the debate whether co-operative banks should be given a favorable treatment when it comes to maintaining the necessary CRR with the RBI.

The 50 basis point increase in CRR, though won't impact much the national level banks but can adversely impact the co-operative banks. National Federation of State Cooperative Banks (Nafscob) managing director B Subrahmanyam said, “We are already hamstrung with the delay in the recapitalization process and the imposition of income tax. Now, the hike in CRR would hit us hard, as we would have less funds to offer crop loans.”

The availability of funds, which is likely to reduce with the increase in CRR will cut into the lending capabilities of co-operative banks. Few years back RBI revoked the privilege granted to state co-operative banks to maintain a CRR at a minimum level of 3%, while commercial banks had to follow a higher CRR.

West Bengal State Cooperative Bank (WBSCB) has already voiced their concerns with the RBI in this regard. It has asked that the State co-operative banks may be accorded preferential treatment in the maintenance of CRR, that is, two percentage point less than that for commercial banks.

There was also a concern regarding reducing the interest rates on various loans. With the 50 basis points increase in CRR it will be very difficult for the banks to offer discounts on interest rates.
State co-operative banks in India have been very popular among masses for their personal and small credit scheme. Here is a list of the major state co-operative banks in India.

1. The Andaman and Nicobar State Co-operative Bank Ltd.
2. The Andhra Pradesh State Co-operative Bank Ltd.
3. The Arunachal Pradesh State co-operative Apex Bank Ltd.
4. The Assam Co-operative Apex Bank Ltd.
5. The Bihar State Co-operative Bank Ltd.
6. The Chandigarh State Co-operative Bank Ltd.
7. The Delhi State Co-operative Bank Ltd.
8. The Goa State Co-operative Bank Ltd.
9. The Gujarat State Co-operative Bank Ltd.
10. The Haryana State Co-opertive Apex Bank Ltd.
11. The Himachal Pradesh State Co-operative Bank Ltd.
12. The Jammu and Kashmir State Co-operative Bank Ltd.
13. The Karnataka State Co-operative Apex Bank Ltd.
14. The Kerala State Co-operative Bank Ltd.
15. The Madhya Pradesh Rajya Sahakari Bank Ltd.
16. The Maharashtra State Co-operative Bank Ltd.
17. The Manipur State Co-operative Bank Ltd.
18. The Meghalaya Co-operative Apex Bank Ltd.
19. The Mizoram Co-operative Apex Bank Ltd.
20. The Nagaland State Co-operative Bank Ltd.
21. The Orissa State Co-operative Bank Ltd.
22. The Pondichery State Co-operative Bank Ltd.
23. The Punjab State Co-operative Bank Ltd.
24. The Rajasthan State Co-operative Bank Ltd.
25. The Sikkim State Co-operative Bank Ltd.
26. The Tamil Nadu State Apex Co-operative Bank Ltd.
27. The Tripura State Co-operative Bank Ltd.
28. The Uttar Pradesh Co-operative Bank Ltd.
29. The West Bengal State Co-operative Bank Ltd.
30. The Chhattisgarh RajyaSahakari Bank Maryadit
31. The Uttaranchal Rajya Sahakari Bank Ltd.