Maharashtra will launch scheme to protect deposits in cooperative credit societies

The Maharashtra government is going to come out with a scheme to protect deposits of up to Rs 1 lakh in cooperative credit societies, on the lines of similar protection offered to depositors of commercial banks.

Cooperation Minister Subhash Deshmukh made the announcement Wednesday after holding a meeting with representatives of cooperative credit societies.

"The name of the scheme would be Pandit Deendayal Upadhyay Credit Society Deposit Protection Scheme. It will provide protection to deposits up to Rs one lakh," he said. The scheme will be launched by Chief Minister Devendra Fadnavis on September 25, he said. "There are 8,421 credit societies in the state, with total deposits of Rs 40,000 crore.

Under the scheme, if a society faces a financial crisis, depositors will still get their money back (up to Rs 1 lakh)," Deshmukh said.

Credit societies have been demanding this protection for a long time, an official of the cooperation department said. A similar protection is already provided to deposits of up to Rs 1 lakh in banks.