As per the MATCS Act, each of the Cooperatives initiated a Reserve Fund upon their registration. Members pay 12% interest on loans they take, of this, 2% goes to the MATCS Reserve Fund. The Reserve Fund provides monetary funds to meet individual member needs as well as the broader needs of each of the Cooperatives. This includes members’ health, children’s’ education, Loan Relief Fund, Death Relief Fund, office maintenance, salaries to CEOs and thrift cadres and honorariums paid to Directors and Presidents. The Death Relief Fund is the most commonly accessed scheme, with 94% of the capital in the Reserve Fund dispensed to members who made life insurance claims.
The Death Relief Fund
Each Cooperative makes contributions to the Death Relief Fund. If an active member of the Cooperative were to pass away, the family receives a consolidated amount of Rs5000 as compensation. An additional Rs550 is also immediately dispensed to pay for funeral expenses. The Death Relief Fund is only applicable for long-standing members. Defaulters or members who have outstanding loan amounts are not covered by the Death Relief Fund.
Loan Relief Fund
The Loan Relief Fund was created to compensate the non-repayment of loans by members who are unable or unwilling to repay. The Fund comes into effect in cases of sudden death or member disappearance. If thrift cadres are not able to locate the member or explain her disappearance, the Cooperative will take action to void the existing loan amount and suspend the member.
Welfare Activity Fund
This fund provides members with up to Rs2500 to cover emergency medical expenses. The Welfare Activity Fund also earns members a 50% discount from specified doctors on presentation of a letter from the Cooperative.
Children’s Education Fund
Each Cooperative allocates funds to meet the educational costs of underprivileged children. This money can be used to cover transportation costs, as well as school uniform and practical costs. The provision of these funds makes education more accessible and has helped to increase the retention rates in rural schools.
Emergency Relief Fund
The Emergency Relief Fund provides compensation to members who have been impacted by natural or man-made disasters. Under this scheme, members may claim back the cost of damages that sudden emergencies have caused.