Lok Sabha Question No. 4094 (UNSTARRED), answered on 2025-03-25
Subject: Modernization of Cooperative Banks and PACS
Ministry: COOPERATION
Asked by: Shri Sukanta Kumar Panigrahi

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 4094 TO BE ANSWERED ON 25 th  MARCH, 2025

## Modernization of Cooperative Banks and PACS

## 4094. Shri Sukanta Kumar Panigrahi:

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

(a) the total funds allocated for the modernization of cooperative banks and PACS (Primary Agricultural Credit Societies) in Odisha;

(b)  the  efforts  made  to  introduce  digital  payment  systems  and  online  banking  in  rural cooperatives;

(c) whether the Government plans to increase financial support for FPOs, dairy cooperatives and SHGs in these districts;

(d)  the  steps  taken  to  encourage  blockchain-based  cooperative  models  for  financial transparency; and

(e)  whether  the  Government is  considering special financial packages for cooperative-led agro-processing industries in Kandhamal, Boudh, Nayagarh, and Ganjam?

## ANSWER

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

(a) The total project cost of PACS computerization under Centrally Sponsored Project for Computerization of PACS (CSPCP) is ₹2516 crore. Under the said project, a proposal has been received from the State Government of Odisha, recently.

Except  67  Multi  State  Cooperative  Banks  which  are  registered  under  Multi  State Cooperative  Societies  Act,  2002,  cooperatives  banks  are  inherently  cooperative  societies which are registered under the Cooperative Society Act of the State concerned.

(b) The Government has made various efforts to introduce digital payment systems and online  banking  in  rural  cooperatives,  aiming  to  modernize  and  streamline  the  financial services in rural areas. These initiatives focus on enhancing financial inclusion, improving transparency,  and  providing  easier  access  to  banking  services  for  farmers  and  rural communities.

Ministry  of  Cooperation,  Government  of  India  is  implementing  a  Nationwide Campaign called 'Cooperation among Cooperatives' to promote cooperation among Primary Dairy Cooperatives (PDCS) and Rural Cooperative Banks. Under this Campaign, PDCS are enrolled as Bank Mitra (Business Correspondent) of Rural Cooperative Banks (RCBs) and distribute Micro-ATMs to them to enable them to provide door-step banking services to the members of cooperatives. Members of Cooperatives are also provided Kisan Credit Card (KCC) to  enable  them  to  avail  themselves  of  credit  at  zero  or  low  interest  rate  (interest subvention).

Through NABARD, focused efforts have been made to drive financial inclusion in rural areas by introducing various digital banking solutions. These include providing financial and technical support to Rural Cooperative Banks (RCBs) for Core Banking Solutions (CBS); providing  one-time  financial  assistance  to  establish  Banking  Correspondent  (BC)  kiosk outlets in unbanked regions of NER;  deploying handheld devices like micro-ATMs and PoS machines for digital transactions; aiding RCBs in complying with regulatory requirements; providing financial support for setting up V-SAT connectivity and deploying mobile signal boosters for better network access;  supporting for Green PIN facility for activating RuPay Kisan  Cards;  promoting  online  bill  payments  through  the  Bharat  Bill  Payment  System (BBPS) and deploying mobile demonstration vans for promoting digital literacy along with financial literacy.

(c) NCDC  is  one  of  the  implementing  agencies  under  the  Central  Sector  SchemeFormation and Promotion of 10,000 FPOs and is actively promoting 27 FPOs across the state of  Odisha  and  has  cumulatively  disbursed  ₹562.15  lakh  towards  their  formation  and promotion.

Under the Central Sector Scheme viz. National Programme for Dairy Development (NPDD) 2.0, financial assistance will be provided for the following three components:

- (i) Setting up of village level milk procurement system
- (ii) Milk Chilling facilities for quality milk procurement
- (iii) Training and capacity building

(d) Computerization  of  PACS,  of  CRCS  office,  of  RCS  offices,  of  ARDBs,  Core Banking Solutions for Cooperative Banks, setting up of Umbrella Organization for Urban Cooperative Banks, setting up of Shared Services Entity for Rural Cooperative Banks etc. are among other steps taken for bringing about financial transparency in the cooperative sector.

(e) No such proposal is presently under consideration.

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