Union Minister of State for Finance Pankaj Chaudhary announced that NABARD and the National Cooperative Development Corporation (NCDC) together infused more than Rs 42,000 crore into cooperative banks during FY 2024–25, marking a strong push for strengthening India’s cooperative banking network.
Within NABARD’s disbursements, Madhya Pradesh emerged as the leading beneficiary, securing Rs 4,430 crore, followed closely by Odisha with Rs 4,113 crore and Karnataka with Rs 3,655.52 crore.
Tamil Nadu received Rs 2,946.49 crore while Rajasthan was allocated Rs 2,760.75 crore. Other major allocations went to Andhra Pradesh with Rs 2,716.55 crore, Maharashtra with Rs 2,696.26 crore and Gujarat with Rs 1,691.31 crore. Smaller states received comparatively modest sums, with Sikkim getting Rs 3.10 crore, Goa Rs 23.97 crore, Nagaland Rs 33 crore, Mizoram Rs 12.60 crore and Manipur Rs 7.81 crore.
Alongside NABARD, NCDC also extended substantial financial support during the same fiscal year. Andhra Pradesh was the top recipient with Rs 3,730 crore while Telangana received Rs 2,000 crore. Madhya Pradesh received Rs 291 crore and Rajasthan Rs 77 crore.
In sharp contrast, Bihar, which had been a significant beneficiary in earlier years, received no disbursement from NCDC during FY 2024–25. Together, these infusions underscore the strategic focus of the central government on sustaining cooperative banks as vital channels of credit and development in rural India.
The Minister further underlined that, except for one Urban Cooperative Bank in West Bengal, all cooperative banks across the country are now operating on the Core Banking Solution (CBS) platform.
This achievement represents a major step in digital transformation for the cooperative sector, ensuring greater transparency, efficiency, and connectivity. The CBS rollout has been described as a crucial reform to enhance customer service, strengthen monitoring and reduce operational risks in cooperative institutions.
Cooperative banks in India are registered under respective State Cooperative Societies Acts or the Multi-State Cooperative Societies Act, 2002. Once they engage in banking, they come under the regulatory ambit of the Reserve Bank of India and are licensed under the provisions of the Banking Regulation Act, 1949. This dual regulatory framework ensures both cooperative principles and financial discipline are maintained.
As of March 31, 2025, India’s cooperative banking system consisted of 34 State Cooperative Banks, 352 District Central Cooperative Banks and 1,457 Urban Cooperative Banks. These figures highlight the vast reach of the cooperative banking framework, which plays a crucial role in extending credit to farmers, small businesses, and rural households.
With the infusion of more than Rs 42,000 crore in FY 2024–25 and the near-complete digital integration of cooperative banks, the sector is poised for enhanced resilience and greater contribution to rural development in the years ahead.
