Rural Credit Co-operatives (RCCs) continue to play a crucial role in agricultural credit delivery through their extensive grassroots network, providing affordable and timely finance for farming and allied activities.
However, their share in total agricultural credit has steadily declined over the years, according to the Reserve Bank of India’s Report on Trend and Progress of Banking in India 2024-25.
As per data compiled from NABARD’s ENSURE portal, the share of Rural Credit Co-operatives in total agricultural credit fell from 13.1 per cent in 2021-22 to 9.0 per cent in 2024-25. Over the same period, the share of commercial banks increased from 75.9 per cent to 80.2 per cent, reflecting their deeper penetration into rural and semi-urban areas.
The share of Regional Rural Banks (RRBs) remained broadly stable, ranging between 10.8 per cent and 11.2 per cent.
The report notes that while RCCs remain vital for supporting agricultural production and rural development, the expanding footprint of commercial banks, driven by technology adoption, branch expansion and the growing presence of business correspondents, has led to a moderation in the cooperative sector’s share of agricultural lending.
