Lok Sabha Question No. 279 (UNSTARRED), answered on 2025-02-04
Subject: Strengthening of Cooperative Societies
Ministry: COOPERATION
Asked by: Shri Manoj Tiwari

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 279 TO BE ANSWERED ON 4 th  FEBRUARY, 2025

## Strengthening of Cooperative Societies

## 279 Shri Manoj Tiwari

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

(a) the steps taken by the Government to strengthen cooperative societies and promote their role in rural and urban development;

(b) whether the Government has introduced any new schemes or financial assistance programs to support cooperative societies and if so, the details thereof;

(c) the  measures taken to ensure transparency, accountability and good  governance  in cooperative institutions;

(d)  whether the Government has conducted any recent assessments of the challenges faced by cooperatives, particularly in Delhi and other metropolitan areas and the findings thereof; and

(e) the details of initiatives undertaken to promote women and youth participation in cooperative societies across the country?

## ANSWER

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

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

(d): The  Government  has  established  National  Cooperative  Database  (NCD)  to  provide necessary inputs for policy decisions. The data has been entered and verified by all the States/ UTs  including  Delhi  and  other  metropolitan  areas.  The  Government  is  implementing  its schemes/ initiatives to strengthen cooperatives based on the inputs from NCD like establishing new  multipurpose  PACS  and  primary  dairy/  fishery  cooperative  societies  covering  all  the Panchayats/ villages across the country.

(e): The government has taken various initiatives to promote the participation of women and youth  participation  in  cooperative  societies  across  the  country.  The  details  of  the  same  are  as under:

(i)    Multi-State  Cooperative Societies (MSCS) Act, 2002 was amended through MSCS (Amendment) Act, 2023 wherein, a specific provision has been introduced for reservation of two seats for women in the Board of MSCS, paving the way for gender equal growth in the Co-operative Sector.

(ii)  Model Bye Laws for PACS has been prepared by the Ministry of Cooperation and circulated  to  States/UTs  across  the  country,  which  mandate  requirement  of  women Directors in the Board of PACS. In addition to the above, Model Bye Laws enable PACS to undertake more than 25 business activities including Bank Mitra/Business Correspondent/Business  Facilitator/  Banking  extension  counter  which  promote  youth participation.

(iii)    National  Cooperative  Development  Corporation  (NCDC),  a  statutory  corporation under  the  administrative  control  of  Ministry  of  Cooperation,  has  been  playing  a significant  role  over  the  years  to  improve  socio-economic  status  of  women  and  youth cooperatives  enabling  them  to  take  up  business  model  based  activities.  NCDC  is implementing the following schemes exclusively for women cooperatives and youth:

A. Swayam Shakti Shahakar Yojna - Under this scheme, working capital loan for upto 3 years is provided to women Self Help Groups (SHGs) for facilitating adequate  bank  credit  to  women  SHGs  to  undertake  common/collective  socioeconomic activities.

B.  Nandini  Sahakar -  Under  this  scheme,  term  loan  is  provided  to  women cooperatives for a period of 5-8 years with the interest subvention of up to 2%. The  financial  assistance  under  the  scheme  is  provided  for  business  plan  based activity /service mandated to NCDC.

C.  Yuva  Sahakar  'Yuva  Sahakar  -  Cooperative  Enterprise  Support  and Innovation Scheme' is being implemented by National Cooperative Development Corporation  (NCDC),  across  the  country,  with  the  aim  to  encourage  newly formed  cooperative  societies  with  new  and/or  innovative  ideas.  The  scheme encourages young entrepreneur Cooperative Societies which are in operation for a minimum of 3 months. The loan provided under the scheme is a long-term loan (up to 5 years) and as an incentive, NCDC provides 2% interest subvention on its applicable rate of interest on term loan for the project activities.

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## Progress on major initiatives taken by Ministry of Cooperation

Ministry of Cooperation, since its inception on 6 th July,  2021, has undertaken several initiatives to realize the vision of 'Sahakar-se-Samriddhi' and to strengthen & deepen the cooperative movement from Primary to Apex level Cooperatives in the country. List of initiatives taken and progress made so far are as follows:

## A. Making Primary Cooperatives economically vibrant and transparent

1. Model Bye-Laws for PACS  making them multipurpose, multidimensional and transparent entities : Government, in consultation with all the stakeholders, including States/ UTs,  National Level Federations, State  Cooperative  Banks  (StCBs), District Central Cooperative Banks (DCCBs), etc., has prepared and circulated Model Bye-laws for PACS to all  the  States/  UTs,  which  enable  PACS  to  undertake  more  than  25  business  activities, improve  governance,  transparency  and  accountability  in  their  operations.  Provisions  have also been made to make the membership of PACS more inclusive and broad-based, giving adequate representation to women and Scheduled Castes/Schedules Tribes. So far, 32 States/ UTs have adopted Model Bye-laws or their existing bye-laws are in line with Model Byelaws.
2. Strengthening of PACS through Computerization :  In order to strengthen PACS, project for  Computerization  of  functional  PACS  with  a  total  financial  outlay  of  ₹2,516  Crore  has been approved by the Government of India, which entails bringing all functional PACS in the Country onto a common ERP based national software, linking them with NABARD through StCBs and DCCBs. A total of 67,930 PACS from 30 States/ UTs have been sanctioned under the project. A total of 50,455 PACS have been onboarded on ERP Software and hardware has been procured by 30 States/UTs.
3. Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives in covering all the Panchayats : The Government of India has approved the plan to establish new multipurpose PACS/dairy/fisheries cooperatives, aiming to cover all panchayats and villages in the country over  the  next  five  years.  This  initiative  is  supported  by  NABARD,  NDDB,  NFDB  and State/UT Governments. For effective implementation of the initiative, 'Margadarshika' has been  launched  on  19.9.2024,  indicating  the  targets  and  timelines  for  stakeholders.  As  per National Cooperative Database, a total of 12,957 new PACS, Dairy and Fishery Cooperative Societies have been registered as on 27.1.2025 across the country since the approval of the plan on 15.2.2023.
4. World's Largest Decentralized Grain Storage Plan in Cooperative sector : Government has approved a plan to create warehouses, custom hiring centers, primary processing units and other agri-infrastructure for grain storage at PACS level, through convergence of various GOI schemes, including AIF, AMI, SMAM, PMFME, etc. This will reduce wastage of food

## ANNEXURE

grains and transportation costs, enable farmers to realize better prices for their produce and meet various agricultural needs at the PACS level itself. Under the pilot project, construction of godowns in 11 PACS of 11 States has been completed.

5. PACS as Common Service Centers (CSCs) for better access to e-services : An MoU has been  signed  between  Ministry  of  Cooperation,  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. So far, 42,080 PACS have started providing CSC services to rural citizens.
6. Formation of new Farmer Producer Organizations (FPOs) by PACS :  Government has allowed 1100 additional FPOs to be formed by PACS with the support of NCDC, in those blocks  where  FPOs  have  not  yet  been  formed  or  the  blocks  are  not  covered  by  any  other implementing  agency.    Against  this  allocation  of  1100  blocks,  958  FPOs  have  been registered/  on-boarded  as  on  27.01.2025.    Apart  from  this,  730  FPOs  have  already  been formed  by  NCDC  in  cooperative  sector.  As  on  date,  a  total  of  1,688  FPOs  have  been registered  /  on-boarded  by  NCDC  in  cooperative  sector.  This  will  be  helpful  in  providing farmers  with  necessary  market  linkages  and  get  fair  and  remunerative  process  for  their produce.
7. PACS given priority for Retail Petrol/ Diesel outlets : Government has allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. As per information received from Oil Marketing Companies (OMCs), 286 PACS from 25 States/UTs have applied online for retail petrol/ diesel outlets.
8. PACS given permission to convert bulk consumer petrol pumps into retail outlets : The existing bulk consumer licensee PACS have been given a one-time option by Oil Marketing Companies to convert into retail outlets. As per information shared by OMCs, 116 wholesale consumer pump licensee PACS from 5 States have given consent for conversion into Retail Outlets, out of which 56 PACS have been commissioned by the OMCs.
9. PACS eligible  for  LPG  Distributorship  for  diversifying  its  activities :  Government  has now allowed PACS to apply for LPG Distributorships. This will give PACS an option to increase  their  economic  activities  and  diversify  their  income  stream.  As  of  now,  2  PACS from the state of Jharkhand have applied for LPG distributorship under CC Category.
10. PACS  as  PM  Bharatiya  Jan  Aushadhi  Kendra  for  improving  access  to  generic medicines  at  rural  level :  PACS  have  been  allowed  to  operate  Pradhan  Mantri  Bhartiya JanaushadhiKendras  (PMBJKs), which will provide additional income source to them and ease  the  access  to  quality  generic  medicines  for  rural  citizens.  So  far,  4,523  PACS/ cooperative societies have applied online for PMBJKs, out of which 2,744 PACS have been given  initial  approval  by  Pharmaceutical  &  Medical  Devices  Bureau  of  India  (PMBI)  and

785 PACS have received drug license from State Drug Controllers and 716 PACS have got store codes from PMBI which are ready to function as PM Bhartiya Jan Aushadhi Kendras.

11. PACS  as  Pradhan  Mantri  Kisan  Samriddhi  Kendras  (PMKSK): PACS  have  been enabled to operate PMKSK for ensuring easy accessibility of fertilizer & related services to farmers in the country. As per the information shared by Department of Fertilizers (GOI) and States/ UTs, a total of 36,193 PACS are functioning as PMKSK.
12. PACS to carry out O&M of rural piped water supply schemes (PWS) : PACS have been made eligible to carry out the Operations & Maintenance (O&M) of PWS in rural areas. As per information received from States/ UTs, 934 PACS have been identified/ selected by 13 States/ UTs to provide O&M services at Panchayat/ Village level.
13. Convergence  of  PM-KUSUM  at  PACS  level :  Farmers  associated  with  PACS  can  adopt solar agricultural water pumps and install photovoltaic modules in their farms.
14. Micro-ATMs  to  Bank  Mitra  Cooperative  Societies  for  providing  doorstep  financial services : Dairy and Fisheries cooperative societies can be made Bank Mitras of DCCBs and StCBs. To ensure their ease of doing business, transparency and financial inclusion, MicroATMs are also being given to these Bank Mitra Co-operative Societies with support from NABARD to provide 'Door-step Financial Services'. To facilitate effective implementation of the initiative, an SOP has been launched on 19 th  September 2024. So far, 8,322 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Gujarat.
15. Rupay Kisan Credit Card to Members of Milk Cooperatives : In order to expand the reach of DCCBs/ StCBs and to provide necessary liquidity to the members of Dairy Cooperative societies,  Rupay  Kisan  Credit  Cards  (KCCs)  are  being  distributed  to  the  members  of cooperatives for providing credit at comparatively lower interest rates and to enable them to carry out other financial transactions. To facilitate effective implementation of the initiative, an SOP has been launched on 19 th  September 2024. So far, 7,43,810 Rupay KCC have been distributed in the State of Gujarat.
16. Formation of Fish Farmer Producer Organization (FFPO) :  In  order  to  provide  market linkage and processing facilities to fishermen, NCDC has registered 70 FFPOs in the initial phase. In addition, Department of Fisheries, Government of India has allocated the work of converting 1000 existing fisheries cooperative societies into FFPOs to National Cooperative Development  Corporation.  National  Cooperative  Development  Corporation  has  identified 997  Primary  Fisheries  Cooperatives  Societies  to  strengthen  as  FFPOs,  with  an  approved outlay of Rs. 280.65 crore.
17. White  Revolution  2.0 :  The  Ministry  of  Cooperation  has  launched  an  initiative  to  usher Cooperative-led "White Revolution 2.0' aimed at expanding cooperative coverage, employment generation and women's empowerment with an objective "To increase the milk procurement of dairy  cooperatives  by  50%  from  the  present  level  over  next  five  years  by

providing market access to dairy farmers in uncovered areas and increasing the share of dairy cooperatives  in  organised  sector."  The  SOP  for  White  Revolution  2.0  was  launched  on 19.11.2024 by Hon'ble Home & Cooperation Minister in presence of Hon'ble Minister of Fisheries,  Animal Husbandry and Dairying.  On 25.12.2024 Hon'ble Home & Cooperation Minister in the presence of Hon'ble Minister of Fisheries, Animal Husbandry and Dairying inaugurated 6,600 newly set up Dairy Cooperative Societies. So far, 8,294 DCSs have been registered in 27 States/UTs.

18. Atmanirbharta Abhiyan : Ministry of Cooperation has launched the initiative to incentivize production of pulses (tur, masur and urad) to reduce dependency on imports, and production of  maize  to  be  used  for  production  of  ethanol  for  meeting  the  goal  of  Ethanol  Blending Programme (EBP) through National Cooperative Consumer Federation (NCCF) and National Agricultural  Cooperative  Marketing  Federation  of  India  (NAFED).  Both  have  developed their own web portal i.e. e-samyukti and e-samridhi respectively for registration of farmers through cooperatives. Both have assured pre-registered farmers of tur, urad, masur and maize to  procure  100%  of  their  produce  at  Minimum  Support  Price  (MSP).  However,  if  market prices exceed the MSP, farmers are free to sell their produce in the open market. A total of 12,64,212  farmers  have  already  registered  on  the  e-samyukti  portal  of  NCCF.  Similarly, 6,75,178 farmers have registered themselves on the e-samridhi portal of NAFED.

## B. Strengthening the Urban and Rural Cooperative Banks

19. Urban Cooperative Banks (UCBs) have been allowed to open new branches to expand their business: UCBs can now open new branches up to 10% (maximum 5 branches) of the existing number of branches in the previous financial year without prior approval of RBI.
20. UCBs have been allowed by RBI to offer doorstep services to their customers: Door step banking facility  can  now  be  provided  by  UCBs.  Account  holders  of  these  banks  can  now avail various banking facilities at home such as cash withdrawal, cash deposit, KYC, demand draft and life certificate for pensioners, etc.
21. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like  Commercial  Banks: Co-operative  banks,  through  board-approved  policies,  can  now provide the process for settlement with borrowers, along with technical write-off.
22. Time limit increased to achieve Priority Sector Lending (PSL) targets given to UCBs : RBI has extended the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e., up to March 31, 2026.
23. A Nodal Officer designated in RBI for regular interaction with UCBs : In order to meet the  long  pending  demand  of  the  cooperative  sector  for  closer  coordination  and  focused interaction, RBI has notified a nodal officer.
24. Individual  housing  loan  limit  more  than  doubled  by  RBI  for  Rural  and  Urban Cooperative Banks:
- a. Housing loan limit of Urban Cooperative Banks has now been doubled from Rs. 30 lakhs to Rs.60 lakhs.
- b. Housing loan limit of Rural Cooperative Banks has been increased to two and a half times to Rs.75 lakhs.
25. Rural Cooperative Banks will now be able to lend to commercial real estate/ residential housing  sector,  thereby  diversifying  their  business :  This  will  not  only  help  Rural Cooperative Banks to diversify their business, but will benefit Housing cooperative societies also.
26. License  fee  reduced  for  Cooperative  Banks :  License  fee  for  onboarding  Cooperative Banks to 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions. Cooperative financial institutions will also be able to get the facility free of cost for the first three months of the pre-production phase. With this, farmers will now be able to get the facility of banking at their home with through biometrics.
27. Non-scheduled  UCBs,  StCBs  and  DCCBs  notified  as  Member  Lending  Institutions (MLIs)  in  CGTMSE  Scheme  to  increase  the  share  of  cooperatives  in  lending: Cooperative banks will now be able to take advantage of risk coverage up to 85 percent on the loans given. Also, cooperative sector enterprises will also be able to get collateral free loans from cooperative banks now.
28. Notification  of  Scheduling  norms  for  including  Urban  Cooperative  Banks: UCBs that meet the 'Financially Sound and Well Managed' (FSWM) criteria and have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to  be  included  in  Schedule  II  of  the  Reserve  Bank  of  India  Act,  1934  and  get  'Scheduled' status.
29. Monetary ceiling doubled by RBI for Gold Loan: RBI has doubled monetary ceiling from Rs. 2 lakhs to Rs.4 lakhs, for those UCBs that meet the PSL targets.
30. Umbrella Organization for Urban Cooperative Banks : RBI has accorded approval to the National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) for the  formation  of  an  Umbrella  Organization  (UO)  for  the  UCB  sector,  which  will  provide necessary IT infrastructure and operational support to around 1,500 UCBs.

## C. Relief to Cooperative Societies in the Income Tax Act

31. Surcharge reduced from 12% to 7% for co-operative societies having income between Rs. 1 to 10 Cr.: This will reduce the burden of Income Tax on Cooperative Societies and more capital will be available with them to work for the benefit of their members.
32. MAT reduced for cooperatives  from  18.5%  to  15%: With  this  provision,  now  there  is parity between Cooperative Societies and Companies in this regard.
33. Relief  in  cash  transactions  under  section  269ST  of  the  Income  Tax  Act: In  order  to remove  difficulties  in  cash  transactions  by  cooperatives  under  Section  269ST  of  IT  Act, Government has issued a clarification that cash transaction of less than Rs. 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and will not be charged with income tax penalty.
34. Tax cut for new manufacturing Cooperative societies: Government has decided that a flat lower  tax  rate  of  15%  will  be  charged,  compared  to  an  earlier  rate  of  up  to  30%  plus surcharge, for new cooperatives commencing manufacturing activities by  March 31, 2024. This will encourage the formation of new cooperative societies in the manufacturing sector.
35. Increase  in  limit  of  Cash  Deposits  and  Cash  Loans  by  PACS  and  PCARDBs: Government has enhanced the limit for Cash Deposits and Cash Loans by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) from Rs. 20,000 to Rs.2 lakh  per  member.  This  provision  will  facilitate  their  activities,  increase  their  business  and benefit members of their societies.
36. Increase in the limit of Tax Deducted at Source (TDS) in Cash Withdrawal: Government has increased the cash withdrawal limit of cooperative societies without deduction of tax at source  from  Rs.1  crore  to  Rs.3  crore  per  year.  This  provision  will  save  Tax  Deducted  at Source (TDS) for cooperative societies, which will enhance their liquidity.

## D. Revival of Cooperative Sugar Mills

37. Relief  from  Income  Tax  to  Sugar  Cooperative  Mills : Government  has  issued a clarification that cooperative sugar mills would not be subjected to additional income tax for paying  higher  sugarcane  prices  to  farmers  up  to  Fair  and  Remunerative  or  State  Advised Price, from April, 2016 onwards.
38. Resolution of decades old pending issues related to Income Tax of Sugar Cooperative Mills :  Government  has  made  a  provision  in  its  Union  Budget  2023-24,  wherein  Sugar cooperatives have been allowed to claim as expenditure their payments to sugarcane farmers for the period prior to assessment year 2016-17, giving them a relief of more than Rs.46,000 crore.
39. Rs.10,000  crore  loan  scheme  launched  for  strengthening  of  Sugar  Cooperative  Mills : Government  has  launched  a  scheme  through  NCDC  for  setting  up  ethanol  plants  or cogeneration plants or for working capital or for all three purposes. So far, the Ministry has released Rs. 875 crore to NCDC (Rs. 500 crore in FY 2022-23 and Rs. 375 crore in FY 202425)  under  the  scheme  and  as  of  now,  NCDC  has  sanctioned  80  loans  amounting  to Rs.9,169.76 crore to 44 CSMs.
40. Preference to Cooperative Sugar Mills in purchase of ethanol : Cooperative Sugar Mills have now been put at par with private companies for ethanol procurement by Government of India under the Ethanol Blending Programme (EBP).
41. Strengthening of Cooperative Sugar Mills by converting their molasses-based ethanol plants  into  multi  feed  ethanol  plants: Ministry  of  Cooperation  has  taken  initiative  in consultation  with  National  Federation  of  Cooperative  Sugar  Factories  Ltd.  (NFCSFL)  for conversion of existing molasses-based ethanol plants of CSMs into multi feed ethanol plants. The Cooperative Sugar Mills (CSMs) also produce ethanol from molasses and sugar syrup by installing ethanol production plants. However, the availability of raw material i.e., molasses and sugar syrup for production of ethanol is limited by many factors viz, Government Policy on diversion of sugarcane syrup, B heavy molasses for production of ethanol and duration of sugar  cane  crushing  season  and  availability  of  sugarcane  depending  on  rainfall,  etc.  On account  of  these  limiting  factors,  the  CSMs  having  ethanol  plants  are  not  able  to  operate them  at  full  capacity  round  the  year.  The  Government  of  India  has  prioritized  maize  for production  of  ethanol,  therefore,  it  is  prudent  for  CSMs  to  convert  their  existing  ethanol production  units  into  multi  feed  ethanol  production  units  so  that  they  are  able  to  produce ethanol by using maize as raw material.
42. Reduction in GST on molasses from 28% to 5%: Government has decided to reduce the GST on molasses from 28% to 5% which will enable cooperative sugar mills to earn more profits for their members by selling molasses to distilleries with higher margins.

## E. Three new National Level Multi-State Societies

43. New National Multi-State Cooperative Seed Society for certified seeds: Government has established  a  new  apex  multi-state  cooperative  seed  society  under  the  MSCS  Act,  2002, namely Bharatiya Beej  Sahakari Samiti Limited (BBSSL) as an umbrella organization  for quality seed cultivation, production and distribution under a single brand. During the Rabi 2024-25 season, 57 Varieties of 12 Crops were sown/ planted in 5,596 hectares. Similarly, during the Kharif 2024 season, 23 varieties of 8 Crops have been planted on 176.59 hectare of land. So far, 17,425 PACS/ Cooperative Societies have become members of BBSSL.
44. New National Multi-State Cooperative Organic Society for organic farming : Government  has  established  a  new  apex  multi-state  cooperative  organic  society  under  the MSCS Act, 2002, namely National Cooperative Organics Limited (NCOL) as an umbrella organization to produce, distribute and market certified and authentic organic products. So far,  5,184  PACS/  cooperative  societies  have  become  members  of  NCOL.  NCOL  has launched 13 products i.e., Whole Wheat Flour, Moong Dhuli, Moong Whole, Moog Chilka Dal, Moog Split, Arhar/ Toor Dal, Urad Whole, Urad Dal, Masoor Whole, Masoor Malka, Brown Chana, Rajma Chitra, Chana Dal under 'Bharat Organics Brand'.
45. New National Multi-State Cooperative Export Society for promoting exports : Government  has  established  a  new  apex  multi-state  cooperative  export  society  under  the

MSCS  Act,  2002,  namely  National  Cooperative  Export  Limited  (NCEL)  as  an  umbrella organization  to  give  thrust  to  exports  from  cooperative  sector.  So  far,  7,933  PACS/ cooperative societies have become members of NCEL. Till date, NCEL has achieved a total export  quantity  of  commodities  (rice,  sugar,  onion,  wheat,  maize  and  Jeera)  of  12,52,083 Metric tonnes with an exported value of Rs. 5,099.24 crore.

## F. Capacity Building in Cooperatives

46. Promotion  of  training  and  awareness  through  National  Council  for  Cooperative Training (NCCT): By increasing its reach, NCCT has conducted 2,872 training programs and provided training to 2,35,060 participants till December 2024.

## G. Use of Information Technology for 'Ease of Doing Business'

47. Computerization  of  the  Central  Registrar's  Office :  Central  Registrar's  office  has  been computerized to create a digital ecosystem for Multi-State Cooperative Societies, which will assist in processing applications and service requests in a time bound manner.
48. Scheme for computerization of office of RCSs in States/ Union Territories: To increase 'ease  of  doing  business'  for  cooperative  societies  and  create  a  digital  ecosystem  for transparent  paperless  regulation  in  all  the  States/  UTs,  a  Centrally  Sponsored  Project  for Computerization of RCS Offices has been approved by the Government. Grants are provided for  the  purchase  of  hardware,  development  of  software,  etc.  to  the  States/  UTs.  So  far, proposals received from 35 States/ UTs have been sanctioned by GOI.
49. 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. So far, proposals from 10 States/UTs have been received and sanctioned. Further, GOI share amounting to Rs 5.08 crore has been released to 9 States/UTs in FY 2023-24 and FY 2024-25 for procurement of hardware, digitization and setting up of support system.

## H. Other Initiatives

50. New  National  Cooperative  Database  for  authentic  and  updated  data  repository: A database  of  cooperatives  in  the  country  has  been  prepared  with  the  support  of  State Governments to facilitate stakeholders in policy making and implementation of programmes/ schemes  related  to  cooperatives  across  the  country.  So  far,  data  of  more  than  8.2  lakh cooperatives across 30 sectors, with approximately 30 crore members, has been captured in the database.
51. Cooperative  Ranking  Framework: The  Government  launched  the  Cooperative  Ranking Framework  on  24 th January  2025  to  rank  cooperatives  State-wise  and  sector-wise.  The ranking framework enables State RCS to assess Cooperative Societies' performance based on key  parameters,  including  audit  compliance,  operational  activities,  financial  performance, infrastructure, and basic identity information. The RCS of the States/ UTs, through login on

NCD portal, can generate ranks of Cooperative Societies, initially of 7 major sectors namely PACS, Dairy, Fishery, Urban Cooperative Banks, Housing, Credit and Thrift, and Khadi and Gram Udyog. This ranking system aims to enhance transparency, reliability and competitiveness among cooperative societies, ultimately fostering their growth. Furthermore, top-performing cooperative societies in each sector will be recognized and honoured by the Ministry of Cooperation and respective State/ UT authorities, aligning with the objectives of the International Year of Cooperatives.

52. International  Year  of  Cooperatives  -  2025  in  India: The  United  Nations  has  declared 2025  as  the  International  Year  of  Cooperatives  (IYC  2025)  to  highlight  the  role  of cooperatives  in  economic  growth,  social  inclusion,  and  sustainability.  The  Ministry  of Cooperation  has  developed  an  action  plan  in  collaboration  with  National  Cooperative Federations,  State  Governments,  Central  Ministries  and  other  stakeholders  emphasizing transparency, policy reforms, and rural economic transformation through PACS. Activities include training, board  meetings,  cooperative  flag  hoisting, exhibitions,  and  business expansion workshops at District, State, and National levels. To ensure effective execution, committees at national, state, and district levels have been formed. The National Execution Committee  (NEC)  and  National  Cooperative  Committee  (NCC)  will  oversee  coordination and  financial  mobilization.  State  Apex  Committees  (SAC),  along  with  State  and  District Cooperative Development Committees (SCDC & DCDC), will organize and manage State/ District/ Village level programs.
53. Multi-State  Co-operative  Societies  (Amendment)  Act,  2023 :  Amendment  has  been brought  in  the  MSCS  Act,  2002  to  strengthen  governance,  enhance  transparency,  increase accountability,  reform  electoral  process  and  incorporate  provisions  of  97 th Constitutional Amendment in the Multi State Cooperative Societies.
54. Cooperative  Ombudsman: Following  the  amendment  in  the  Multi-State  Cooperative Societies  (MSCS)  Act,  2002,  Cooperative  Ombudsman  has  been  appointed  under  Section 85A of the said Act vide gazette notification dated 05.03.2024. The Ombudsman office is fully functional and deals with complaints or appeals, from members of the MSCS regarding their  deposits,  equitable  benefits  of  the  Multi-State  Co-operative  Society's  functioning  or any other issue affecting the individual rights of the concerned member.
55. Cooperative  Election  Authority  (CEA): Following  the  amendment  in  the  Multi-State Cooperative Societies (MSCS) Act, 2002, the Cooperative Election Authority has been set up to strengthen governance and accountability, with a mandate to conduct free and fair election in  all  MSCSs.  Elections  in  more  than  80  MSCS  have  been  conducted  successfully  up  to December, 2024.
56. Inclusion  of  Cooperatives  as  'buyers'  on  GeM  portal: The  Government  has  permitted cooperatives  to  register  as  'buyer'  on  GeM,  enabling  them  to  procure  goods  and  services from over 67 lakh vendors to facilitate economical purchases and greater transparency. So far, 574 cooperative societies have been onboarded on GeM as buyers.
57. Expansion of National Cooperative Development Corporation (NCDC) to increase its range and depth : NCDC  has  launched new  schemes in various sectors such as 'Swayamshakti Sahkar' for SHGs; 'Deerghavadhi Krishak Sahkar' for long term agricultural credit  and  'Dairy  Sahkar'  for  dairy.  During  the  current  FY  2024-25,  so  far,  total  financial assistance of Rs. 84,673.70 crores has been disbursed by NCDC.
58. Financial  assistance  by  NCDC  for  Deep  Sea  Trawlers :  NCDC  is  providing  financial assistance  for  projects  related  to  deep  sea  trawlers  in  coordination  with  the  Department  of Fisheries,  Government  of  India.  NCDC  has  already  sanctioned  financial  assistance  of  Rs. 25.95 crore for purchase of total 44 deep sea trawlers for the Fisheries Cooperative Societies of Maharashtra and Gujarat State.
59. National Cooperation Policy (NCP): The formulation of New National Cooperation Policy (NCP) has been envisaged to fulfil the mandate of the Ministry of Cooperation - "Sahakar se Samriddhi."  A  National  level  committee  was  constituted  on  2.9.2022  under  Shri  Suresh Prabhakar  Prabhu  with  experts  of  the  cooperative  sector,  representatives  from  National/ State/ District/ Primary level cooperative societies, Secretaries (Cooperation) and RCSs from States/  UTs  and  officers  from  Central  Ministries/  Departments  to  formulate  the  New Cooperation Policy to provide a framework to unlock the true potential of the Cooperative sector. The Committee conducted four regional workshops throughout the country to elicit suggestions  from  stakeholders.  The  received  suggestions  have  been  incorporated  into  the draft policy appropriately. The draft policy has been prepared and is under finalization.
60. Refund to Investors of Sahara Group of Societies : A portal has been launched for making payments  to  the  genuine  depositors  of  the  cooperative  societies  of  Sahara  Group  in  a transparent  manner.  Disbursements  have  already  started  after  proper  identification  and submission  of  proof  of  their  deposits  and  claims.  So  far,  Rs.  2,025.75  crores  have  been disbursed to 11.61 lakh applicants.

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