Minister Calls for New Urban Co-op Banks in All Cities Over 2 Lakh Population within Five Years
NEW DELHI:Union Home and Cooperation Minister Amit Shah today called upon Urban Cooperative Banks (UCBs) to step forward and play a critical role in empowering the aspirational youth and underprivileged sections of society.
Inaugurating the two-day Co-op Kumbh 2025, an International Conference on the Urban Cooperative Credit Sector, in New Delhi, Mr. Shah set an ambitious target for the sector’s expansion.
Speaking at the conference, themed “Digitalising Dreams – Empowering Communities,” the Minister stated that the National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) and urban cooperative organizations should issue moral guidelines for all UCBs to redesign their financial structures.
“The goal is to strengthen cooperatives while also uplifting the vulnerable sections of society,” Shah said.
He laid out a clear expansionary aim for the sector: to establish an Urban Cooperative Bank in every town with a population of more than two lakh within the next five years.
To foster future leadership, Mr. Shah highlighted the establishment of Tribhuvan Cooperative University to connect the younger generation with cooperatives and prepare sector professionals, with the aim of creating a generation that will take the cooperative sector to new heights by 2047.
The Minister noted the significant policy reforms undertaken by the government, including the creation of model bylaws for Primary Agricultural Credit Societies (PACS), which have been adopted by every state.
“This has significantly reduced the likelihood of PACS becoming defunct, and even if one does become inactive, reviving it will now be easier,” he stated.
To usher in a new era of digital payments, Mr. Shah also announced the launch of the Sahakar DigiPay and Sahakar DigiLoan Apps, which will enable even the smallest urban cooperative societies to join the digital economy.
The conference, jointly organised by NAFCUB and the Ministry of Cooperation, celebrates the International Year of Cooperatives 2025 and will see participation from policymakers, cooperative leaders, and international experts from the World Council of Credit Unions and GreenStone Farm Credit Services.
On the occasion, Mr. Shah congratulated two of India’s leading cooperatives, AMUL and IFFCO, for securing the top two positions in the International Cooperative Alliance world ranking.
AMUL, he noted, is driving the White Revolution by collecting 30 million litres of milk nationwide.
IFFCO has become a pillar of the Green Revolution, producing 9.3 million tons of Urea and DAP, with its Nano DAP and urea now being exported to over 40 countries, including Brazil, the USA, Oman, and Jordan.