airpay Payment Services has partnered with Maharashtra State Co-operative Bank (MSCB), India’s largest state cooperative bank, to enable UPI payments across the bank’s entire network of villages, district banks, and branches across Maharashtra. The network handles an annual business volume of ₹62,000 crore, a significant share of which is expected to shift to digital transactions.
The rollout covers 21,000+ Primary Agricultural Credit Societies (PACS), 31 District Central Co-operative Banks (DCCBs), and 55 MSCB branches across the state. UPI payments are now available across this network at no additional cost to merchants.
Cooperative banks have historically been the primary financial touchpoint for rural India. This partnership extends India’s digital payments network to farmers, traders, and cooperative members across Maharashtra, many of whom are transacting digitally for the first time.
The move comes as NABARD and RBI push cooperative banks to digitise. In 2024, NABARD Chairman Shaji KV noted that there are significant opportunities for fintech companies to partner with regional rural and cooperative banks to strengthen the digital ecosystem. The airpay–MSCB partnership represents one of the first large-scale implementations supporting this vision.
“We are proud to power Maharashtra’s apex cooperative bank with a UPI acquiring stack that reaches 21,214 village-level societies. Thousands of grassroots micro-merchants and unorganised retail merchants will now access a seamless digital banking experience comparable to that offered by leading private sector banks. This partnership sets a national template for how cooperative banks can modernise at speed and scale,” said Kunal Jhunjhunwala, Founder, airpay Payment Services.
“The Maharashtra State Co-operative Bank Ltd. has since 1911 consistently been the backbone of Maharashtra’s rural and agricultural economic growth through the three-tier credit cooperative structure,” said Dilip Dighe, Managing Director, Maharashtra State Co-operative Bank Ltd.
“Our partnership with airpay marks a significant milestone in our digital transformation journey. By integrating advanced digital payment solutions across our cooperative network, we aim to enable seamless, secure and inclusive banking services. We expect to convert entire transactions into digital mode to strengthen transparency, efficiency, and financial inclusion. This initiative represents our firm commitment towards a truly cashless Bharat, where every farmer, trader, and cooperative member benefits from friction-free banking.”
The rollout aligns with the Government of India’s agenda under the Ministry of Cooperation to digitise the cooperative sector and is fully compliant with RBI guidelines on digital payments and KYC requirements.