In a landmark decision for India’s cooperative movement, the Central Government has officially notified the inclusion of the Cooperative Bank of India (COBI) in the Second Schedule of the Multi-State Co-operative Societies Act, 2002.
The Gazette notification cements COBI’s status as the 20th national-level cooperative federation under the Act.
Founded in 1993, COBI has waited 32 years for this momentous recognition. Cooperative leaders across the country say the long-pending inclusion heralds a new era of stability and credibility for cooperative finance.
Under the dynamic stewardship of Ajay Patel, Chairman of Gujarat State Cooperative Bank and a close associate of of Union Home and Cooperation Minister Amit Shah, COBI’s campaign for Second Schedule status gained decisive momentum.
Union Home and Cooperation Minister Amit Shah has frequently underscored the government’s commitment to strengthening cooperatives. Insiders note that COBI’s inclusion marks the first concrete step toward realizing the Minister’s vision of a pan-India cooperative clearing mechanism.
In a parallel initiative, COBI has engaged NABCONS, the consultancy arm of NABARD, to draft a comprehensive business plan, a prerequisite for obtaining a full-fledged banking license. With regulatory approvals on the horizon, COBI aims to evolve into the central financial institution for India’s cooperative sector, channeling funds efficiently and bolstering the movement’s financial autonomy.
As COBI prepares to leverage its newly conferred status, stakeholders are optimistic that the bank will emerge as the linchpin of cooperative finance, driving growth, innovation, and resilience across the sector.
COBI, which has members like IFFCO, KRIBHCO, NAFED, all State Cooperative Banks, LDBs, NCCF, and Urban Cooperative Banks such as Saraswat Co-operative Bank, SVC Bank, Cosmos Bank, and others, has amended its bye-laws to increase its authorized share capital from Rs 100 crore to Rs 1000 crore, and will soon submit the revised proposal to the Central Registrar of Cooperative Societies (CRCS) for approval.