In a significant development, after extensive deliberations, the Reserve Bank of India (RBI) has decided to maintain the food credit consortium arrangement for 30 state cooperative banks at the previous year’s level for the financial year 2025-26.
As per the revised allocation, the total fixed share for State Cooperative Banks (StCBs) has been increased from Rs 53,550 crore in FY 2024-25 to Rs 54,694 crore in FY 2025-26, including a fresh allocation for the Bihar State Cooperative Bank.
Earlier, the allocation was capped at Rs 41,000 crore. However, after intervention by the Union Ministry of Cooperation, state cooperative banks, and other cooperative organizations, the RBI reconsidered its decision, leading to the revised allocation.
This allocation aims to support cooperative banks in their food procurement operations and strengthen the cooperative banking sector.
Among the major allocations, Andhra Pradesh State Cooperative Bank Ltd. has been allocated Rs 750 crore, while the Bihar State Cooperative Bank Ltd. has received a fresh allocation of Rs 1,500 crore. Similarly, the Chhattisgarh State Cooperative Bank Ltd. has been allotted Rs 2,200 crore.
In western India, Gujarat State Cooperative Bank Ltd. has secured the highest allocation with Rs 8,000 crore, while the Maharashtra State Cooperative Bank Ltd. has been granted Rs 3,500 crore. Meanwhile, Haryana State Cooperative Bank Ltd. has received Rs 2,000 crore, including an additional allocation.
Moving to the northern and eastern regions, the Himachal Pradesh State Cooperative Bank Ltd. has been allotted Rs 3,700 crore, whereas Odisha State Cooperative Bank Ltd. will receive Rs 2,500 crore. The West Bengal State Cooperative Bank Ltd. has been assigned Rs 4,700 crore to support agricultural financing in the state.
In the southern region, Kerala State Cooperative Bank Ltd. has been allocated Rs 5,000 crore, and Tamil Nadu State Cooperative Bank Ltd. has received Rs 3,000 crore. Meanwhile, Uttar Pradesh State Cooperative Bank Ltd. has been assigned Rs 2,714 crore for food credit financing.
These revised allocations ensure continued financial support for cooperative banks, enabling them to play a crucial role in food procurement operations and rural credit expansion.
State Cooperative Banks across India have welcomed the Reserve Bank of India’s (RBI) decision to maintain the food credit consortium allocation at last year’s level, with a revised total of Rs 54,694 crore for the financial year 2025-26.
Earlier, the Union Ministry of Cooperation had written to the Reserve Bank of India (RBI) seeking a reversal of the recent decision to reduce food procurement financing limits for State Cooperative Banks (StCBs).
