Union Cooperation Minister Amit Shah on Tuesday highlighted the Centre’s efforts to expand insurance services through the cooperative banking network, saying several initiatives have been taken under the ‘Sahakar Se Samriddhi’ vision to enable cooperative banks to undertake banking and allied financial activities on par with commercial banks.
In a written reply in the Lok Sabha, Shah said cooperative banks have been allowed to act as Corporate Agents for the distribution of insurance products.
The initiative is aimed at diversifying their business portfolio, improving financial viability, enhancing fee-based income and promoting financial inclusion, particularly in rural, semi-urban and underserved areas.
The Minister further said that, following the Ministry of Cooperation’s efforts, the Reserve Bank of India (RBI) has removed the minimum net worth requirement of Rs 50 crore for Rural Cooperative Banks to obtain a Corporate Agent licence for distributing insurance products.
According to Shah, the move is expected to facilitate greater participation of cooperative banks in insurance distribution while improving access to quality banking and insurance services through the cooperative network.
