RBI set up a panel to find ways to strengthen the rural cooperative credit structure.

The 7 member Committee headed by NABARD Chairman Prakash Bakshi will;

· Review the prevailing Short Term Cooperative Credit Structure (STCCS), focusing on structural hindrances in rural credit delivery system.

· Discover ways to strengthen the rural cooperative credit architecture.

· Do detailed analysis of the STCCS and test various alternatives that can cut the cost of credit.

· Analyze the possibility of setting up of a two-tier STCCS in place the current three-tier form.

· Assess the role played by state and district cooperative banks in fulfilling the agriculture credit requirement

· Identify cooperative banks that may not sustain for long even if some of them have fulfilled the diluted licensing criteria for the time being

· Handover its report within 3 months

STCCS targets the credit need of the small and marginal farmers in the country.