Addressing a session on the “Importance of Credit Societies and Credit Unions and Challenges of Regulation” and the Future of India’s Cooperative Credit Sector, Uday Joshi, NAFCUB Director and President of Sahakar Bharati, underlined the immense contribution of credit cooperatives to India’s grassroots financial inclusion.
Joshi revealed that there are around 85,000 credit cooperative societies operating across the country today, collectively mobilizing over Rs 1 lakh crore in deposits. “These institutions have been instrumental in extending affordable credit to millions, particularly in rural and semi-urban areas,” he said.
Tracing the history of the movement, Joshi recalled that the first credit cooperative was established in 1879 at Baroda, Gujarat, which later transformed into a bank. “Even after 120 years of the cooperative law’s existence, we must admit that the mission to free farmers from moneylenders remains incomplete,” he observed.
He noted that despite the lack of stringent regulatory control-unlike the RBI’s supervision over urban cooperative banks-credit cooperatives continue to serve people with integrity and efficiency. However, he stressed the need for self-regulation, pointing out that the sector currently lacks deposit insurance, revival mechanisms, and access to financial assistance.
Joshi shared that Sahakar Bharati has already submitted a Charter of Self-Regulation to the Central Registrar of Cooperative Societies (CRCS) and urged that it be incorporated into cooperative rules. “We must take charge of our own discipline-self-regulation is the foundation of credibility,” he emphasized.
Highlighting innovation in the sector, he cited Buldana Urban Cooperative, the country’s largest credit cooperative with deposits exceeding Rs 13,500 crore, which has even installed a robotic locker facility at its Mumbai branch- a first in the cooperative sector.
Joshi concluded that while challenges remain, India’s credit cooperative movement is strong, resilient, and self-driven, playing a vital role in inclusive growth and financial empowerment across the nation.
