NEW DELHI, MAY 21, 2026: In a significant step towards strengthening India’s cooperative financial ecosystem, the Ministry of Cooperation has initiated high-level discussions on enhancing concessional funding and institutional credit support to cooperative institutions through NABARD and NCDC. The move is expected to improve the financial strength and lending capacity of Cooperative Banks, PACS, Urban Cooperative Banks, Dairy Cooperatives and other grassroots cooperative societies across the country.
A high-level meeting chaired by Cooperation Secretary Dr. Ashish Kumar Bhutani reviewed several important policy and regulatory issues relating to cooperative credit institutions. The discussions focused on improving credit flow, strengthening institutional financing, governance reforms, modernization of cooperative banking systems and expanding financial inclusion in rural and semi-urban areas.
Senior officials from the Department of Financial Services (DFS), Ministry of Cooperation, and Central Registrar of Cooperative Societies participated in the deliberations. The meeting highlighted the growing importance of the cooperative sector in achieving inclusive and sustainable rural development.
The proposed enhancement in support to NABARD and NCDC is expected to improve refinance facilities and provide cheaper institutional funding to cooperative institutions. This will help Cooperative Banks and Credit Societies increase their lending support to farmers, rural artisans, women self-help groups, dairy farmers and small entrepreneurs.
The Ministry also discussed the need for governance reforms, operational strengthening, and simplified compliance systems for cooperative institutions. Sector representatives have repeatedly expressed concerns over increasing operational stress, taxation issues and complex compliance procedures, particularly among small cooperative societies functioning with limited technical and administrative resources.
The recent consultations between officials of the Ministry of Cooperation and the Department of Revenue on taxation and compliance-related issues indicate the Government’s serious commitment towards resolving the challenges faced by cooperative credit institutions. These efforts are expected to create a more supportive and business-friendly environment for cooperatives across the country.
Experts believe that stronger financial support to the cooperative sector will improve liquidity, enhance rural credit delivery, strengthen agricultural financing, and deepen financial inclusion at the grassroots level. The initiative is also expected to accelerate modernization and improve the overall efficiency and sustainability of cooperative institutions.
The Ministry of Cooperation’s continued focus on strengthening cooperative finance reflects the Government of India’s commitment to realizing the vision of “Sahakar Se Samriddhi” by empowering cooperatives as key drivers of rural economic growth and social development.
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