The Centre has stepped up efforts to digitise India’s cooperative sector, with a pilot project launched in Gujarat to route all financial transactions of dairy and other cooperatives through the banking network.
In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the initiative, supported by National Bank for Agriculture and Rural Development (NABARD), is being implemented in Banaskantha and Panchmahal district cooperative banks. Primary Dairy Cooperative Societies have been equipped with micro-ATMs, along with financial literacy drives to boost digital adoption.
The government has also expanded access to credit through RuPay Kisan Credit Cards (KCCs). As of February 28, 2026, over 71.06 lakh RuPay KCCs have been issued by rural cooperative banks nationwide, with states like Tamil Nadu, Karnataka, and Andhra Pradesh leading adoption.
To further support farmers, the KCC scheme now covers animal husbandry and fisheries, while collateral-free agricultural loans up to Rs 2 lakh have been enabled by Reserve Bank of India.
Additionally, incentives on RuPay and BHIM-UPI transactions are strengthening digital payments across the cooperative ecosystem.
