Lok Sabha Question No. 2068 (UNSTARRED), answered on 2025-03-11
Subject: Strengthening of Cooperative Socities
Ministry: COOPERATION
Asked by: Smt. Bijuli Kalita Medhi

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2068 TO BE ANSWERED ON  11 th  MARCH, 2025

## Strengthening of Cooperative Societies

## 2068 Smt. Bijuli Kalita Medhi:

Will the Minister of Cooperation ( सहकारिता मंत्री ) be pleased to state:

(a) the details of steps taken to strengthen cooperative societies across rural and urban areas in the country; and

(b)  whether  there  are  any  plans  to  introduce  new  schemes  or  policies  to  support  digital transformation and modernization of cooperative societies?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a) In order to strengthen cooperative societies and to ensure transparency, accountability and good governance in cooperative institutions across the rural and urban areas, various new schemes and initiatives have been taken by the Ministry of Cooperation since its inception, which are enclosed at Annexure .

(b) The Ministry of Cooperation has introduced new schemes / initiatives and policy interventions to support digital transformation and modernization of cooperative ecosystem including cooperative societies, details of which are as follows:

- (i) Computerization  of  PACS  Project:  Government  of  India  has  approved  the  Project  for Computerization of functional PACS, which entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based Common National Software, linking them with National Bank for Agriculture and Rural Development (NABARD) through State Cooperative Banks  (StCBs)  and  District  Central  Cooperative  Banks  (DCCBs).  The  ERP  (Enterprise Resource  Planning)  based  Common  National  Software  brings  about  efficiency  in  PACS performance  through  Common Accounting  System  (CAS)  and  Management  Information System  (MIS).  Further,  governance  and  transparency  in  PACS  also  improves,  leading  to speedy disbursal of loans, lowering of transaction cost, reduction in imbalances in payments, seamless accounting with DCCBs and StCBs.
- (ii) Computerization of Agriculture and Rural Development Banks (ARDBs): To strengthen the long-term  cooperative  credit  structure,  the  project  of  computerization  of  1,851  units  of Agriculture  and  Rural  Development  Banks  (ARDBs)  spread  across  13  States/  Union Territories has been approved by the Government. NABARD is the implementing agency for the project.
- (iii) PACS as Common Service Centers (CSCs) for better access to e-services: An MoU has been signed between Ministry of Cooperation, Ministry of Electronics and Information Technology (MeitY), NABARD and CSC e-Governance Services India Limited for providing more than 300 e-services such as banking, insurance, Aadhar enrolment/ updation, health services, PAN card and IRCTC/ Bus/ Air ticket, etc. through PACS.
- (iv) Under the initiatives of the Ministry, a portal for the office of Central Registrar of Cooperative Societies (CRCS) i.e., www.crcs.gov.in has been developed and successfully launched on 6th August, 2023. This initiative is aimed to digitize and make the office of CRCS paperless by providing various services under Multi-State Cooperative Societies (MSCS) Act/Rules online, to make the management of MSCSs easier and to enhance transparency & efficiency in the working of the CRCS office. All the working processes of CRCS office inter-alia including Registration, Amendment of Bye-laws, filling of Annual return, branch opening, sale officer appointment,  online  payments  to  Cooperative  Education  Fund  (CEF)  and  Cooperative Rehabilitation, Reconstruction and Development Fund (CRRDF), etc. are being processed through the new online portal in compliance with the statutory requirements of MSCS Act.
- (v) Computerization  of  Registrar  of  Cooperative  Societies  (RCS)  of  States/UTs: A  centrally sponsored project for the computerization of RCS offices in States/Union Territories has been approved by the Central Government on 06.10.2023 with a budgetary outlay of Rs.94.59 crore for  three  years  w.e.f.  2023-24.  This  is  a  part  of  the  umbrella  project  of  'Strengthening Cooperatives Through IT Interventions' of the Ministry. The objectives of the project are to enhance the ease of doing business for Cooperative Societies and create a digital ecosystem for transparent & paperless transactions of cooperative societies with the RCS offices in all States/Union  Territories.  The  software  developed  under  this  project  will  be  as  per  the Cooperative Acts of the respective States/UTs.
- (vi) NABARD as part of its developmental role,  had  facilitated  the  Rural  Cooperative  Banks (RCBs) to onboard the  Core Banking Solution (CBS) in 2011. 211 RCBs are availing of services of two CBS clouds facilitated by NABARD. Currently, NABARD is also facilitating these banks to upgrade their CBS systems.
- (vii) With the approval of Reserve Bank of India, a non-banking financial company (NBFC) viz. National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), has been set up as an Umbrella Organization (UO) for Urban Cooperative Banks (UCB) in India. It aims to digitally transform the India's Urban Cooperative Bank (UCB) sector as a major player in the country's financial system by providing a robust and reliable IT infrastructure that can significantly reduce IT costs for UCBs while enabling them to provide modern digital banking products based on latest technology.
- (viii) A pilot project to promote 'Cooperation among Cooperatives' was launched on 21st May, 2023 in Banaskantha and Panchmahal districts of Gujarat. One of the components, of the project is to distribute Micro-ATMs to the dairy cooperative societies after making them Bank-Mitra of the DCCBs to provide 'Door Step Financial Services' and to ensure ease of doing business, transparency  and  financial  inclusion.  On  the  basis  of  learnings  during  the  Pilot  period,  a Statewide Campaign was launched in Gujarat on 15th January 2024.  A Standard Operating Procedure (SOP) launched on 19th September, 2024 for Nationwide implementation of the 'Cooperation among Cooperatives' Campaign. As on 28.02.2025, 9915 micro-ATMs have been distributed.