The Union Ministry of Cooperation has announced that the Government of India plans to equip all scheduled cooperative banks with services equivalent to those offered by national and private banks within the next three years.
This initiative is expected to significantly expand the scope of their services while ensuring better utilization of resources, improvement in banking processes, and integration of accounting systems across all cooperative banks.
With a strong focus on providing multi-faceted benefits to the urban cooperative sector, the government aims to enhance efficiency and modernize operations.
India currently has 1,465 urban cooperative banks, nearly half of which are located in Gujarat and Maharashtra. Additionally, the country has 49 scheduled urban cooperative banks and over 8.25 lakh cooperative institutions, playing a crucial role in financial inclusion and grassroots banking.
This move is expected to strengthen the cooperative banking sector, making it more competitive and aligned with mainstream banking services.