While highlighting the government’s initiatives to revamp and strengthen cooperative banks, Union Home and Cooperation Minister Amit Shah, in a written reply in the Lok Sabha, said that the Banking Regulation Act has been amended to align the term of the Board of Directors of Cooperative Banks as per the constitution, limiting it to a maximum of 10 consecutive years.
In a step towards comprehensive reform, the Ministry of Cooperation has constituted a Task Force under NAFCUB on the ‘Transformation of Urban Cooperative Banks and Cooperative Credit Societies’. The task force has so far submitted two detailed reports.
Further, at the request of the Ministry, NABARD has submitted a report on reforms, restructuring, and innovation in Agriculture and Rural Development Banks (ARDBs), providing a strategic framework for their modernization.
Additionally, the Ministry commissioned a detailed study through IRMA (Institute of Rural Management Anand) for the National Cooperative Agriculture & Rural Development Banks’ Federation Ltd. (NAFCARD). The study culminated in an approved Action Plan aimed at expanding lending operations, promoting non-farm sector activities, and enhancing cooperative governance.
The Ministry has also completed a strategic study to elevate the role of NAFSCOB (National Federation of State Cooperative Banks) during Amrit Kaal (2022–2047).
The report outlines a roadmap for reforms in cooperative credit, digital integration, diversification of financial services, and institutional strengthening. With a strong emphasis on governance, capacity building at the state level, and inclusive outreach, the roadmap positions NAFSCOB to lead the transformation of cooperative banking and promote sustainable rural development across India.