The Public Libraries are recognized and paid grant-in-aid by the Directorate of Libraries according to the Maharashtra Public Libraries (Recognition for Grant-in-Aid and Building and Equipment Grants) Rules, 1970 framed by the government under the provisions of Maharashtra Public Libraries Act. These libraries are classified in categories according to their book stock, users, A, B, C, and D categories etc. as follows:
| Class | No. of Books | No. of Periodicals | No. of Newspapers | No. of Members |
| A | 15001 | 51 | 16 | 301 |
| B | 5001 | 16 | 6 | 101 |
| C | 1001 | 6 | 4 | 51 |
| D | 301 | 6 | 4 | 26 |
While recognizing these libraries, the library is required to be registered under the Public Trust Act 1950 or Society’s Registration Act. 1860 The maximum maintenance grant paid to these libraries is upto 90% of the admissible expenditure incurred by the library in the previous year or a maximum limit of the amount of grant fixed as maximum to the category of the library whichever is less as follows:
| Class | District | Taluka | Other |
| A | Rs. 4,80,000 | Rs. 2,56,000 | Rs. 1,92,000 |
| B | Rs. 2,56,000 | Rs. 1,92,000 | Rs. 1,28,000 |
| C | - | Rs. 96,000 | Rs. 64,000 |
| D | - | - | Rs. 20,000 |
Sub centre library under A and B categories is paid Rs. 8000 for each center to a maximum of Rs. 32000 i.e for four centres. The other benefits extended to these recognized public libraries are;
Equipment Furniture Grants- up to maximum limit of the maintenance grants admissible to the library;
Incentive grants- for reaching the higher category, which is paid on purchase of more books for increasing the subscribers;
Building grants- are paid for erecting functional library building. These grants are paid to a maximum of :
Rs. 75,000 for A Class
Rs. 48,000 for B Class
Rs. 24,000 for C Class
Celebration grants -
On the recommendations of the State Library Council an amount not exceeding Rs. 10,000 is being paid for the special functions and for celebrating special occasions, such as Silver, Golden and Centenary celebrations.
Since the implementation of the Act the Public Libraries are strengthened to a great extent as they are now getting adequate grants. The rate of maintenance grants were made doubled in the years 1979-80, 1989-90, 1995-96 and 1998-99, and in 2004-2005 respectively.
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Year wise details of grants increased (figures in Rs.) |
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| Type of Library | 1970 | 1979-80 | 1989-90 | 1995-96 | 1998-99 | 2004-05 till date |
| District A | 15000 | 30000 | 60000 | 120000 | 240000 | 480000 |
| Taluka B | 8000 | 16000 | 32000 | 64000 | 128000 | 256000 |
| Other A | 6000 | 12000 | 24000 | 48000 | 96000 | 192000 |
| District B | 8000 | 16000 | 32000 | 64000 | 128000 | 256000 |
| Taluka B | 6000 | 12000 | 24000 | 48000 | 96000 | 192000 |
| Other B | 4000 | 8000 | 16000 | 32000 | 64000 | 128000 |
| Taluka C | 3000 | 6000 | 12000 | 24000 | 48000 | 96000 |
| Other C | 2000 | 4000 | 8000 | 16000 | 32000 | 64000 |
| Class D | 500 | 1000 | 2000 | 5000 | 10000 | 20000 |
The following table gives the year wise number of public libraries and the amount paid to them as grant-in-aid since the implementation of the Act.
Grant-in-aid paid to public Libraries
| Year | Number of Libraries | Amount paid in Rs. (Lakhs) |
| 1969-70 | 574 | 7.90 |
| 1979-80 | 2087 | 45.79 |
| 1989-90 | 4481 | 228.39 |
| 1999-2000 | 6490 | 1291.74 |
| 2000-2001 | 5675 | 1376.94 |
| 2001-2002 | 6053 | 1274.22 |
| 2002-2003 | 6600 | 1780.69 |
| 2003-2004 | 6600 | 1841.00 |
| 2004-2005 | 7503 | 3804.80 |
| 2005-2006 | 7503 | 4178.26 |
| 2006-2007 | 8201 | 4154.98 |
| 2007-2008 | 8637 | 4703.24 |
| 2008-2009 | 9624 | 4735.13 |
Every year new libraries are being recognized according to the funds made available by the District Planning Committee in the concerned district. Emphasis being given on the expansion of the Library Service in the rural area by establishing village libraries and implementing Inter-Library loan System in the State. The responsibility of providing Inter-Library loan System is entrusted on the District and Taluka Libraries who in turn pass on reading material to other libraries. Public participation during the last 40 years in the Development of Library service and the Library movement is satisfactory. At present the recognized libraries have been persuaded to organize reading classes for the benefit of the illiterates. Book exhibitions are also being organized at different places, and students are specially persuaded to “See and Read” new books.