In a written reply in the Rajya Sabha, Union Home and Cooperation Minister Amit Shah highlighted the financial assistance provided by the National Cooperative Development Corporation (NCDC) to Cooperative Banks over the years.
The NCDC has sanctioned loans amounting to Rs 3,225 crore in 2021-22, Rs 9,280 crore in 2022-23, Rs 3,740 crore in 2023-24, and Rs 6,098 crore (as of 2024-25) to boost the growth and financial stability of the cooperative banking sector.
Cooperative banks, registered under the Cooperative Society Act of their respective states, play a vital role in the financial ecosystem. Currently, only 67 Multi-State Urban Cooperative Societies operate under the Multi-State Cooperative Societies Act, 2002.
The NCDC, a statutory body under the Ministry of Cooperation, extends financial assistance to these banks for infrastructure development and for onward lending to their members, supporting activities aligned with the NCDC’s objectives.
To further strengthen Urban Cooperative Banks (UCBs), the Reserve Bank of India (RBI), following continuous efforts from the Ministry of Cooperation, has implemented various regulatory and policy measures. These initiatives aim to enhance financial stability, governance, and efficiency in the cooperative banking sector, ensuring better access to credit for cooperative societies and their members.
