Meghalaya Cooperative Apex Bank

Website of Meghalaya Cooperative Apex Bank Limited : http://megcab.com

The Meghalaya Cooperative Apex Bank has been providing credit facilities to cooperative societies registered under cooperative societies Act in force in Meghalaya to extend better banking services. It has been catering to the credit needs of the people of the State through its network of 307 branches. The Bank is managed by an elected Board since it inception. The Managing Director of the bank is also a professional banker. The bank has been enjoying very good reputation among cooperatives. It has implemented I.C.D.P., East Khasi , Jaintia Hills and West Garo hills Project under N.C.D.C's assistance.

The comparative financial position of the Bank for the last three years is furnished below:(Rs. in lakhs)

The Bank has been maintaining highest Credit Deposit Ratio in the State consistently for several years. The present C: D Ratio of the Bank stood at 32% as on 31st March 2004 as against 17% by Public Sector Banks.

Banking Products and Services: For Service, Security and Prosperity

Deposit Schemes

Current Account

• Savings Bank Account
• Minor Savings Scheme
• Recurring Deposit Scheme
• Fixed Deposit Scheme
• Fixed Deposits linked with Recurring Deposits Scheme
• Monthly Income Deposit's Scheme
• Double Benefit/Reinvestment Deposits Scheme
• Cash Certificate Scheme
• Loan Linked Housing Deposit's Scheme
• Loan Linked Children Education Deposits Scheme

Loan Schemes

1. Crop Loans

Short terms loans are provided for Seasonal Agricultural operation to Farmers, (cash and kind) through Service Co-operative Societies spread all over Meghalaya as per approved scales of finance, time schedule both under N.C.L., Cash Credit Systems and Kisan Credit Cards.

2.Term Loans:

Medium and Long Term Loans are extended to the Farmers through the affiliated Service Co-operative Societies direct for allied agricultural activities like land development, minor irrigation, purchase of farm machinery, poultry, goat rearing, pisciculture, diary, horticulture, plantation and Horticulture schemes.

3.Cash Credit Accommodation:

Cash Credit accommodations are provided to Co-operative Societies for procurement, marketing of agriculture and minor forest produces and also for dealing in consumer goods, etc.

4. Housing Loans:

Salaried persons are extended Housing Loan facilities for construction of their residential houses in CD Block Head Quarters and other selection areas against adequate securities.

5.Transport Vehicle Loans:

The Bank provides M.T. Loans to Transport Societies and educated unemployed youths for creation of self employment generation and extension of easy mobility to the people of the State.

6. Consumer Durables Loans:

Salaried persons are provided consumer durables loans for purchase of T.V. Set, Radio, Refrigerator, Two-Wheelers, Musical Instruments, Cooking Gas, Furniture and various other approved items.

7. Cash Credit Facilities:

Government appointed whole sellers are extended Cash Credit/Loan facilities for dealing in controlled commodities against adequate securities.

8. Term Loans for Tourism Development:

Term Loans are provided for encouraging young and enterprising entrepreneurs and unemployed persons for creating self-employment opportunities through Tourism Development.

9. Deposit Linked Housing Loans and Schemes:

The scheme is intended for regular constituents of the Bank for construction of their residential houses with financial assistance from the Bank.

10. Integrated Village Development Scheme (I.V.D.S.):

The scheme is intended to help formation of homogeneous groups with 5 to 20 members in the rural areas in the co-operative sector and extend loan assistance to them for improving their socio-economic conditions by undertaking various economic activities which are socially useful and economically viable.

11. Personal Loan:

Salaried persons are provided Personal Loans for any bonafide need of unspeculative nature in the shape of overdraft facilities against adequate securities.

12. Educational Loan:

Educational Loans are provided to parents/deserving students for higher studies in India/ abroad adequate securities.

13. Loan For Professional and Technocrats:

Credit facilities are extended to Doctors, Lawyers, Technocrats and other Professionals to set up Clinic, Consultancy firms etc. against adequate securities.

Other Schemes and Services

• Financial Assistance to Urban Banks, Weavers Co-ops, Industrial Co-ops, Joint Farming Societies, etc.
• Conversion of short term (Agril) Loans affected by Natural Calamities into Medium Term Loans.
• Implementation of comprehensive Crop Insurance Scheme for the benefit of the farmers.
• Consumption Loans to Farmers and Weaker Sections for various approved purposes.
• Godown Loans to Service Co-operative Societies.
• Overdraft facilities to regular constituents of the Bank.
• Kisan Credit Card Scheme for Farmers.
• Schemes for Unemployed Youth

The Bank Has Arrangement for Issue of Bank Drafts and Cheques All Over Assam and In Metropolis of Calcutta, Mumbai, Delhi and Chennai.

Highlights and Achievements

1. The Meghalaya Co-operative Apex Bank Limited (M.C.A.B.) was established in 1971, with the formation of Meghalaya State after bifurcation of the erstwhile Assam State. Since then the Bank has developed the expanded its activities/operations and has grown in manifolds. M.C.A.B. commenced banking operations with just two branches-one at Shillong and the other at Tura. Today, the bank has a wide network of 39 branches, spread throughout the State providing effective banking products and other related services to the general public. The M.C.A.B. has mobilized Deposit resources of more than Rs.378.19 crores and has advanced over Rs.118.22 crores for various development activities in the State. The M.C.A.B. is a household name in Meghalaya.
2. The M.C.A.B. as a pioneering co-operative Banking Institution in Meghalaya, has taken the banking to the doorsteps of the people of the State and has been able to nurture and develop its banking habits among the people. This has changed the saving habits of people from the traditional methods to the modern banking facilities to earn remunerative returns for their savings invested with the bank and utilized various attractive and innovative banking products offered by M.C.A.B..
3. With judicious deployment of resources, the Bank has been able to maintain a highest Credit Deposit Ratio of about 32% in the State, far surpassing the performance of Commercial and Public Sector Banks who have the C.D. Ratio of about 14% in the State.
4. The bank has to provide Debt Relief to more than 54,000 farmers amounting to Rs.9.81 crores under the 'Agricultural and Rural Debt Relief Scheme' 1990 sponsored by the Government of India, and made them Debt Free and re-eligible to avail loans and advance from the M.C.A.B..
5. The M.C.A.B., introduced innovative Banking Services, in the Co-operative Banking Sector, and opened all Women Bank Branches (staffed exclusively by women) – one at Mawkhar, Shillong and the other at Chandmari, Tura.
6. The M.C.A.B. is the first State Co-operative Bank to start 'Mobile Banking' services in rural areas to provide banking services at doorsteps of the people in the unbanked villages of East Khasi Hills.
7. The M.C.A.B. is the first Bank in the country to extend Housing Loans to the general public, even before the 'national Housing Bank' came into existence.
8. The Bank took initiatives and played active role in the introduction of IRRI Paddy cultivation in flood prone areas to enable the farmers to reap richer harvests before the onset of monsoon. M.C.A.B. is proud that its initiatives have yielded positive results and the farmers growing I.R.R.I. Paddy in Meghalaya, are more prosperous today.
9. The M.C.A.B. has created direct employment opportunities for about 600 persons in the Bank and has created thousands of job opportunities for educated unemployed youths through numerous self-employment generation schemes of the Bank.
10. The M.C.A.B. has introduced number of innovative schemes to increase the flow of credit and create productive employment opportunities and improve the general socio-economic condition in the State. Few of such schemes are 'Integrated Village Development Scheme', 'Cooperative Group Financing', 'Tourism Development Scheme', 'Increased allocation under Housing and Transport Loans', etc.
11. In order to improve the recovery of hardcore overdues, M.C.A.B. has introduced in an innovative scheme under which cash incentives to the extent of ½% to 1% is given to the office-bearers and others involved in the recovery process at the level of Service Co-operative Societies.
12. Under the Leadership of M.C.A.B., the Co-operative Banks in the North Eastern Region with the help of NABARD, have established the 'Manpower Development and Management Institute (M.D.M.I.)'. In 1998 in Shillong and since then M.D.M.I. has been providing affective training facilities for all categories of employees and office-bearers of the Co-operative Institutions and Traditional Heads of the North Eastern Region.
13. In order to strengthen co-operation among Co-operatives and establish an effective forum for the Co-operative Institutions in the North Eastern Region, a consortium of Co-operatives in the form of 'North east India Co-operative Development Foundation (N.E.C.D.F.)' has been established in 1998 at the initiative of M.C.A.B..
14. The M.C.A.B. has been extending guidance and providing effective leadership for Short Term Co-operative credit Structure, in particular and the Co-operative Sector in general, in the North Eastern Region at the level of various National Forums, Re-financing Agencies, Government of India etc. to focus the problems, issues and prospects of the Co-operative Movement and the Co-operatives in the Region.
15. The efforts and performance of the M.C.A.B. have been widely recognized by the National Level Co-operative Organisations such as N.A.F.S.C.O.B., N.C.A.R.D.B. and the National Refinance Bank, N.A.B.A.R.D., by awarding 'Best Performance Awards'. Mobile Banking

(A) Introduction and Purpose : With a view to popularize the idea of Cooperatives and inculcate savings habit among the cooperative members and the general public in the East Khasi Hills District especially in the rural areas and also with a view to bring the Banking services at their door steps, the Mobile Banking Service was started under the Integrated Cooperative Development Project of the District on experimental basis w.e.f. 5th March 1993 covering 9(nine) rural centres which are held in the premises of the Services Cooperative Societies as under:  

1. Mawryngkneng Centre.
2. Sohryngkham Centre.
3. Mawklot Centre.
4. Mawphlang Centre.
5. Mawtawar Centre.
6. Laitkroh Centre.
7. Mawkriah Centre.
8. Sohiong Centre.
9. Tynring Centre.

(B) Operation: For running the Mobile Banking, one mobile van was allotted which has two wings (1) for publicity purpose and (2) for mobile banking purpose which is under the supervision and control of the Branch Manager, Shillong Main Branch. Now the said van has been out of service and a Tata Sumo is utilized for this purpose. At the first instance the main object of the Mobile Banking was that it will be managed by the staff of the Meghalaya Co-operative Apex Bank Ltd who will in course of time impart training to the Cadre Secretaries of the respective Co-operative societies with the idea that the entire operation will be handed over and managed by themselves and run a mini Bank at their registered society's office. The mini Bank will in turn cater to the immediate needs of their members for their cash and micro credit requirements.

The Mobile Banking is till today manned by 5(five) staff of the Meghalaya Cooperative Apex Bank Ltd; Shillong as under:-  

1. Junior Assistant - 1 number
2. Cashier - 1 number
3. Guard - 1 number
4. Helper - 1 number
5. Driver - 1 number

The salaries of the staff including the expenditures for running and Maintenance of the mobile vehicle is totally borne by the Bank and as it is at present, the total amount of salary paid is Rs.0.77 lakhs per month and the expenditure for running and maintenance of the vehicle (cost of POL etc.) the amount is Rs.10,000/- per month approximately.

At the beginning when the Mobile Banking was launched by covering the above mentioned centres, the Bank has been able to mobilize deposits to the tune of Rs.1.25 lakhs only by involving 372 number of accounts which are mostly Savings and Recurring Deposit Bank Accounts. Now the position of the deposit mobilized as on 31/12/2009 has gone up to 167.27 lakhs covering 3140 no, of accounts.  

The entire programme for visit of the mobile van to the different centres was prepared in such a way that the dates of visit coincide with the local market days as it is convenient for the rural folks to withdraw money according to their needs to enable them to purchase their daily requirements from the market and also to deposit money out of the sale proceeds of their produces which they bring and sell in the local market. Drawals of the amount exceeding Rs.50,000/- requires prior intimation so that necessary arrangement can be made for payment of the amount on the next visit of the mobile van.  

The entire exercise carried out by the Meghalaya Cooperative Apex Bank Limited in this respect is not only for mobilization of the deposits but also for extending social services to the rural people especially the members of the Cooperative Societies