airpay Payment Services has partnered with Maharashtra State Co-operative Bank (MSCB) to enable UPI payments across the bank’s cooperative network in Maharashtra, expanding digital payment access to thousands of rural merchants and cooperative members.
The rollout will cover more than 21,000 Primary Agricultural Credit Societies (PACS), 31 District Central Co-operative Banks (DCCBs), and 55 MSCB branches across the state. Through the partnership, merchants across this network will be able to accept QR-based UPI payments at no additional cost.
MSCB’s cooperative network handles an annual business volume of around ₹62,000 crore, a significant portion of which is expected to transition to digital transactions following the rollout.
Cooperative banks have historically served as the primary financial touchpoint for rural communities. The partnership aims to extend digital payments infrastructure to farmers, traders and cooperative members across Maharashtra, many of whom may be adopting digital payments for the first time.
The initiative comes amid broader efforts by financial regulators and institutions to accelerate digital transformation in the cooperative banking sector. In 2024, National Bank for Agriculture and Rural Development (NABARD) Chairman Shaji KV highlighted the opportunity for fintech companies to collaborate with regional rural and cooperative banks to strengthen India’s digital financial ecosystem.
“We are proud to power Maharashtra’s apex cooperative bank with a UPI acquiring stack that reaches over 21,000 village-level societies. Thousands of grassroots micro-merchants and unorganised retailers will now have access to a seamless digital banking experience comparable to leading private sector banks,” said Kunal Jhunjhunwala, Founder, airpay Payment Services.
According to Maharashtra State Co-operative Bank, the partnership marks a significant step in its digital transformation journey. The bank has played a central role in supporting Maharashtra’s rural and agricultural economy through the three-tier cooperative credit structure since its establishment in 1911.
“Our partnership with airpay marks an important milestone in our digital transformation journey. By integrating digital payment solutions across our cooperative network, we aim to enable secure, seamless and inclusive banking services for farmers, traders and cooperative members,” said Dilip Dighe, Managing Director, Maharashtra State Co-operative Bank.
The initiative also aligns with the Government of India’s broader agenda to digitise the cooperative sector under the Ministry of Cooperation and is compliant with the Reserve Bank of India’s guidelines on digital payments and KYC requirements.
Send news announcements/press releases to:
editor@thefoundermedia.com
