RBI Rolls Out Measures to Strengthen Cooperative Banks’ Financial Health, Governance and Digital Inclusion

RBI Rolls Out Measures to Strengthen Cooperative Banks’ Financial Health, Governance and Digital Inclusion

The Reserve Bank of India (RBI), in consultation with the Government of India, has announced that loans sanctioned by banks to National Cooperative Development Corporation (NCDC) w.e.f. January 19, 2026, for on-lending to cooperative societies are eligible for classification as priority sector lending under the respective categories. These apply to banks other than Regional Rural Banks, Urban Cooperative Banks, Small Finance Banks and Local Area Banks. These loans are for purposes and activities as laid down in the Master Direction on Priority Sector Lending, 2025.

National Cooperative Development Corporation (NCDC), a statutory corporation under the administrative control of the Ministry of Cooperation, provides financial assistance to Cooperatives and contributes directly in accelerating the growth of cooperative movement

The Government of India and RBI have taken various measures to strengthen cooperative banks’ financial health, governance and digital inclusion along with enhancing deposit security, credit availability and prudent regulation, which inter-alia include:

This information was given by the Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in Rajya Sabha today.