In a significant move for the cooperative banking sector, the Reserve Bank of India has included “AgriSURE – Agri Fund for Startups & Rural Enterprises” under the list of permitted financial services for both rural and urban cooperative banks.
Through separate notifications issued on Monday, the RBI amended its existing guidelines and added AgriSURE to the approved activities that cooperative banks can undertake. The amendments have come into effect immediately.
In effect, cooperative banks can now participate in activities related to the AgriSURE fund as part of their permitted financial services under the RBI’s regulatory framework. Given their strong connect with farmers and rural communities, the move is expected to facilitate better support for agri-startups and small rural enterprises.
The decision is seen as an enabling step that could allow cooperative banks to expand their role while remaining within regulatory boundaries. It may also help improve the outreach of funding for agriculture-based innovation and rural business development.
As per available information, AgriSURE – Agri Fund for Startups & Rural Enterprises is a Rs 750 crore fund aimed at supporting agriculture-focused startups and rural businesses in India.
The fund has been jointly promoted by the Government of India and NABARD, and is managed by NABVENTURES Ltd.. It follows a blended investment structure, with funding deployed both directly into startups and through other venture funds.
The initiative focuses on sectors such as agri-tech, food processing, dairy, and rural supply chains, with the broader aim of boosting innovation, generating employment, and strengthening the rural economy.