The Government on Wednesday informed the Rajya Sabha that cooperative institutions have maintained a steady contribution to agricultural credit disbursement in the country, with their share ranging between 9% and 13% over the past five financial years.
In a written reply, Union Minister of Cooperation Amit Shah said rural cooperative banks disbursed Rs 2.57 lakh crore in FY 2024–25, accounting for around 9% of the total agricultural credit of Rs 28.66 lakh crore.
He noted that the share of cooperatives was relatively higher at 13% in FY 2021–22, but has moderated slightly in subsequent years. The data, compiled from submissions made by banks on the ENSURE portal of NABARD.
Addressing concerns related to financial stability, the Minister said the Reserve Bank of India has strengthened regulatory norms for cooperative banks. On November 28, 2025, RBI issued Master Directions on Asset Liability Management, covering key aspects such as liquidity risk and interest rate risk, which are integral to stress testing frameworks.
On long-term strengthening of the cooperative credit structure, the government highlighted several measures undertaken jointly by RBI and NABARD. Rural Cooperative Banks are required to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 9%, along with additional capital buffers to support growth and manage risks prudently.
Further, NABARD has issued a guidance note on capital management in May 2024, advising cooperative banks to adopt a forward-looking, board-driven framework for assessing capital needs. For financially weak banks, a comprehensive Turnaround Action Plan (TAP) has been implemented, focusing on governance reforms, business diversification, cost rationalisation, technology adoption, and financial inclusion.
The Minister also underscored the role of state governments in recapitalisation efforts, noting that states such as Madhya Pradesh, Punjab, Uttar Pradesh, Maharashtra, Odisha and Bihar have contributed to the share capital of rural cooperative banks.
Additionally, NABARD provides long-term refinance support to state governments under the NABARD Act, 1981, to strengthen the capital base of cooperative institutions.
