In a written reply in the Lok Sabha, Union Minister of State for Finance Pankaj Chaudhary informed that the combined business of Rural Cooperative Banks (RCBs) in Telangana stood at around Rs 2 lakh crore, while the business of Urban Cooperative Banks (UCBs) stood at Rs 17,003 crore as on March 31, 2025.
The Minister stated that Telangana has 445 branches of Rural Cooperative Banks, including nine District Central Cooperative Banks and one State Cooperative Bank. These RCBs mobilised deposits of Rs 1,65,644 crore and extended advances of Rs 34,426 crore during the period.
In comparison, the state has 48 Urban Cooperative Banks operating through 355 branches. These UCBs reported deposits of Rs 10,198 crore and advances of Rs 6,805 crore as on March 31, 2025.
Chaudhary further informed the House that the National Cooperative Development Corporation (NCDC) has, till date, released Rs 2,000 crore as financial assistance to the Telangana State Cooperative Bank.
Referring to supervisory issues, the Minister said that, as informed by NABARD, three instances of fraud were reported in various Rural Cooperative Banks in Telangana during FY 2024–25, and appropriate supervisory actions have been taken as per prescribed guidelines.
To strengthen the cooperative banking system and ensure its financial health, the Minister said that RBI and NABARD have taken several measures. These include the launch of Sahakar Sarathi Private Limited by the Ministry of Cooperation through NABARD to provide shared digital infrastructure to RCBs at affordable cost, and grant assistance to set up Business Development and Product Innovation Cells (BDPIC) and PACS Development Cells (PDC).
He added that a High-Level Committee, chaired by the Secretary, Cooperation, Government of Telangana, monitors the financial health of all RCBs on a quarterly basis. Banks with Gross NPAs above 10 per cent are required to submit Time-Bound Action Plans, which are jointly monitored by RBI and NABARD.
The Minister also said that Urban Cooperative Banks, except smaller and salary earners’ banks, are required to constitute a Board of Management and put in place a whistle-blower mechanism. RBI has also issued guidelines for a Risk-Based Internal Audit system in UCBs.
Chaudhary reiterated that deposits in cooperative banks are insured up to Rs 5 lakh per depositor by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
