Union Home and Cooperation Minister Amit Shah has highlighted a series of regulatory and technology reforms aimed at strengthening Rural Cooperative Banks (RCBs), including relaxation of RBI norms, easier lending rules, digital infrastructure support and simplified Aadhaar-enabled payment access.
In a written reply in the Lok Sabha, Shah said the Reserve Bank of India (RBI) has removed the Rs 50-crore net worth requirement for Rural Cooperative Banks to become Corporate Agents for the distribution of insurance products, enabling more cooperative banks to diversify their services.
He also said that, following an RBI clarification issued on January 7, 2026, directors of Rural Cooperative Banks and their related cooperative societies are now eligible to avail loans from their respective State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs), subject to prescribed conditions.
Shah further informed that Sahakar Sarathi (Shared Service Entity) Private Limited has been established with RBI approval to provide technology solutions for Rural Cooperative Banks. The platform has already launched 15 technology services for the cooperative banking sector.
The Minister also said that UIDAI’s revised Aadhaar Enabled Payment System (AePS) framework, effective from August 1, 2025, has simplified onboarding for cooperative banks. Under the new framework, only State Cooperative Banks are required to onboard as Authentication User Agencies (AUA)/eKYC User Agencies (KUA), while DCCBs can access these services through their respective State Cooperative Banks as sub-AUA/KUA, free of cost.
