The Ministry of Cooperation has taken several steps to strengthen cooperative banks by enabling them to undertake banking and allied financial services on par with commercial banks, Union Home and Cooperation Minister Amit Shah informed the Lok Sabha.
A key reform allows cooperative banks to act as corporate agents for distributing insurance products, helping diversify their business, boost fee-based income and improve financial viability. Shah said the initiatives support the vision of “Sahakar Se Samriddhi” by expanding quality banking and insurance services in rural, semi-urban and underserved areas.
He added that, at the Ministry’s initiative, the RBI has removed the earlier requirement of a minimum net worth of Rs 50 crore for Rural Cooperative Banks to obtain a corporate agent licence, paving the way for wider insurance penetration and greater financial inclusion through the cooperative network.
