Union Home and Cooperation Minister Amit Shah on Wednesday said the Ministry of Cooperation has completed a strategic study to strengthen the role of the National Federation of State Cooperative Banks (NAFSCOB) during Amrit Kaal (2022–2047).
In a written reply to the Rajya Sabha, the Minister said the roadmap focuses on reforms in cooperative credit, digital integration, diversification of financial services and institutional strengthening. The strategy places strong emphasis on improved governance, state-level capacity building and inclusive outreach, positioning NAFSCOB as a key institution to lead cooperative banking and support sustainable rural development across India.
Shah further informed the House that the Reserve Bank of India (RBI), through a clarification dated January 7, 2026, on Section 20 of the Banking Regulation Act, has allowed Directors of Rural Cooperative Banks and their affiliated cooperative societies to avail loans from State Cooperative Banks and District Central Cooperative Banks, subject to stipulated conditions.
He also noted that under an RBI Master Direction dated December 4, 2025, State Cooperative Banks and District Central Cooperative Banks have been permitted to open up to 10 percent new branches through the automatic route, enabling faster expansion and improved banking outreach.
