The Significant Role of District Central Co-Operative Bank in Mobilizing Domestic Savings and Supporting Rural Finance in Madikeri District: An Empirical Analysis

This study tests the hypothesis that District Central Cooperative Banks (DCC Banks) play a significant role in mobilizing domestic savings in India. To gather household savings-especially in rural and semi-urban regions-DCC Banks offer a range of deposit schemes, including savings, current, and fixed deposits, and serve as intermediaries between primary agricultural credit societies (PACS) and state cooperative apex banks134. The study evaluates the effect of DCC Bank schemes on domestic savings rates using econometric models and time-series data from 2000 to 2023. The findings suggest that, while DCC Banks substantially support rural savings and credit delivery, their contribution to the overall domestic savings rate is statistically moderate. Factors such as limited digital outreach, competition from commercial banks, and regulatory constraints-including most DCC Banks' unscheduled status-may account for this result274. In the current financial environment, the results highlight the need for policy reforms and technological upgrades to enhance the efficacy of DCC Banks in mobilizing domestic savings and supporting rural finance.