Lok Sabha Question No. 2794 (UNSTARRED), answered on 2026-03-10
Subject: New National Cooperative Policy
Ministry: COOPERATION
Asked by: Dr. Prabha Mallikarjun

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2794 TO BE ANSWERED ON 10 th  MARCH, 2026

## New National Cooperative Policy

## 2794. Dr. Prabha Mallikarjun:

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

- (a) whether the New National Cooperative Policy, already announced by the Government, has been formally notified and operationalized in all States, if so, the details thereof;
- (b) whether detailed implementation guidelines, timelines and measurable targets have been issued under the Policy, if so, the details thereof;
- (c) whether the State Governments and cooperative institutions are being actively consulted during its rollout, in keeping with the federal and constitutional framework, if so, the details thereof;
- (d) whether the Policy has led to tangible improvements in governance, audits, access to credit and digitization of cooperatives, if so, the details thereof; and
- (e)  the  monitoring  mechanism in  place  to  assess  outcomes  and  address  concerns  raised  by stakeholders?

## ANSWER

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

- (a) Yes, sir. The National Cooperation Policy (NCP), 2025 was launched on 24 th July 2025 by the Hon'ble Home & Cooperation Minister. The formulation of this policy has been envisaged to  fulfil  the  mandate  of  the  Ministry  of  Cooperation  -  "Sahkar  se  Samriddhi."  The  policy provides a roadmap for the systematic and holistic development of the cooperative sector. It has 6 strategic pillars, 16 objectives, and 83 recommendations. The policy encourages States to formulate/reformulate their State Cooperative Policy, in a manner that both State and Central Governments work towards common goals for the development of cooperatives.
- (b) The policy enunciates a vision, a mission, and 16 specific objectives to be achieved over the next 10 years, organized under six strategic mission pillars, as mentioned below:
- I. Strengthening  the  Foundation: Creating  a  strong  foundation  for  the  cooperative movement.
- II. Promoting Vibrancy: creating a vibrant and self-sustaining ecosystem.
- III. Making Cooperatives Future Ready: Transforming cooperatives into professional and sustainable economic entities.
- IV. Promoting Inclusivity and Deepening Reach: promoting  Cooperative-led  inclusive development and cooperatives as a people's movement.
- V. Entering New and Emerging Sectors: promoting the entry of cooperatives into new and emerging sectors.
- VI. Shaping Young Generation for Cooperative Growth: Inspiring the young generation and  providing  them  with  cooperative-oriented  experiential  learning  that  develops connect with the rural cooperative milieu.

A series of initiatives have been undertaken by the Ministry in furtherance of the objectives of the NCP, 2025. Many of them have been taken prior to the launch of the policy. The list is enclosed at Annexure-1.

(c) The Ministry of Cooperation has been pursuing State/UT Governments to formulate their State-level  Cooperation  Policy  in  line  with  the  NCP,  2025,  so  that  the  Central  and  State Governments can work together in a synergistic manner to effectively implement the policy recommendations.

During  the  formulation  stage  also,  the  NCP  2025  was  drafted  after  multi-level consultations  and  regional  workshops  with  stakeholders  from  the  cooperative  sector  and State/UT  Governments.  A  48-member  National  Level  Committee,  chaired  by  Sri  Suresh Prabhakar Prabhu (former Union Cabinet Minister), was constituted to draft the new National Cooperation  Policy.  The  Committee  held  17  meetings  and  four  regional  workshops  (in Ahmedabad, Bengaluru, Gurugram, and Patna) and received a total of 648 inputs through the consultation process. The Committee comprised members from national and state cooperative federations and societies across various levels and sectors, representatives from related Central and State Government Ministries/Departments, and members from academia.

States  have  been  actively  engaged  in  the  smooth  and  timely  implementation  of  the Ministry's initiatives. Monthly meetings are organised under the chairmanship of Secretary, Cooperation  through  video  conferencing  with  the  States/UTs  to  review  the  progress  of initiatives undertaken by the Ministry of Cooperation. In addition, quarterly review meetings are conducted in physical mode with the Principal Secretaries/Secretaries of the Cooperative Departments  of  the  States  and  the  Registrars  of  Cooperative  Societies  of  the  States/UTs. Recently, the 'Manthan Baithak' was held on 17 th February 2026 under the chairmanship of the Hon'ble  Union  Home  and  Cooperation  Minister,  with  the  participation  of  the  Hon'ble Cooperation Ministers of States/UTs.

(d)  The  Policy  has  been  unveiled  on  24.07.2025  and  it  is  too  early  to  assess  its  tangible improvements.

(e) The Implementation Cell and the Policy Implementation and Monitoring Committee under the NCP, 2025 have been set up.

*****

## Initiatives Taken by the 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. The list of initiatives taken, including progress made so far is as follows:

## A. Making Primary Cooperatives economically vibrant and transparent

1. Model  Bye-Laws  for  Primary Agriculture  Credit  Societies  (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 the Scheduled Castes/Scheduled Tribes. So far, 32 States/ UTs have adopted Model Bye-laws or their existing bye-laws are in line with Model Bye-laws.

## 2. Strengthening of PACS through Computerization :

To strengthen PACS, a project for the Computerization of functional PACS with a total financial outlay of ₹2925.39 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  National  Bank  for  Agriculture  and  Rural  Development (NABARD) through StCBs and DCCBs. A total of 79,630 PACS from 31 States/ UTs have been  sanctioned  under  the  project.  A  total  of  61,025  PACS  have  been  onboarded  on Enterprise  Resource  Planning  (ERP)  Software,  and  hardware  has  been  procured  by  30 States/UTs.

3. Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives to cover 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, National Dairy Development  Board  (NDDB),  National  Fisheries  Development  Board  (NFDB),  and State/UT Governments. As per the National Cooperative Database, a total of 32,802 new PACS, Dairy and Fishery Cooperative Societies have been registered; and 15,793 Dairy and Fisheries Cooperative Societies have been strengthened as on 20.01.2026 across the country since the approval of the plan on 15.2.2023.

4. Launch  of  Margdarshika/  SOP  for  Establishing  New  Multipurpose  PACS/  Dairy/ Fishery Cooperatives in covering all the Panchayats:

To ensure effective and timely implementation of the plan, the Ministry of Cooperation, in coordination  with  NABARD,  NDDB,  and  NFDB,  has  launched  a  Standard  Operating Procedure  (Margdarshika)  on  19.9.2024,  indicating  the  targets  and  timelines  for  all stakeholders concerned

5. World's  Largest  Decentralized  Grain  Storage  Plan  in  the  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  Government  of  India  (GOI)  schemes,  including  Agriculture Infrastructure  Fund  (AIF),  Agricultural  Marketing  Infrastructure  Scheme  (AMI),  Sub Mission on Agricultural Mechanization (SMAM), Pradhan Mantri Formalization of Micro Food Processing  Enterprises  Scheme  (PMFME),  etc. This  will  reduce  wastage  of  food 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. Further, under the Extended  Pilot,  more  than  500  PACS  across  the  country  have  been  identified  for  the construction of godowns under the World's Largest Grain Storage Plan in the Cooperative Sector.

Currently,  the  State  Department  of  Food  and  Civil  Supplies,  National  Agricultural Cooperative  Marketing  Federation  of  India  Ltd.  (NAFED),  and  National  Cooperative Consumers Federation of India Limited (NCCF) have given hiring assurance for godowns to be constructed in 287 PACS, and construction work has commenced in 208 PACS, out of  which  construction  completed  in  109  PACS  (Rajasthan.  -90,  Maharashtra-  15  and Gujarat - 4)

6. Launch  of  Margdarshika/  SOP  for  World's  Largest  Grain  Storage Plan in Cooperative Sector : A comprehensive Standard Operating Procedure (SOP) -'Margdarshika' has been developed and shared with the States/ UTs for the smooth and uniform  implementation  of  the  Plan.  The  Margdarshika  includes:  formation  of  various committees under the scheme, decisions taken in the Inter-Ministerial Committee (IMC), introduction  and  benefits  of  various  converged  schemes  under  the  plan,  application procedure,  phase-wise  implementation  flowchart  of  the  grain  storage  project,  expected outcomes and defined timelines, roles and responsibilities of the Ministry of Cooperation and  other  stakeholders,  Warehousing  Development  and  Regulatory Authority  (WDRA) guidelines for the construction of godowns, criteria for the selection of PACS under the scheme.
7. Amendments made under AMI Scheme with regard to World's Largest Grain Storage Plan: Based on the decisions taken in  the  2nd  IMC  meeting  of World's  Largest  Grain Storage Plan in the Cooperative Sector, held on 23.10.2024, the Department of Agriculture and Farmers Welfare has made the following amendments under the AMI scheme:
- To enhance the financial viability of the scheme, the margin money requirement has been reduced from 20% to 10%.
- The construction cost has been revised from ₹3000-3500/MT to ₹6000 - 7000/MT for plain areas and from ₹4000/MT to ₹8000/MT for northeastern states.
- The subsidy has been increased from 25% to 33.33% (from ₹875/MT to ₹2333/MT for plain areas and from ₹1333.33/MT to ₹2666/MT for northeastern states).
- For PACS, a provision has been made to provide an additional subsidy of 1/3 (one third) of the total admissible subsidy for ancillary infrastructure such as internal roads, weighbridges, boundary walls, etc.
8. Developments  pertaining  to  FCI  regarding  identification  and  issuance  of  Hiring Assurance  to  Godowns  under  the  World's  Largest  Grain  Storage  Plan  in  the Cooperative Sector:

Based on the decisions taken in the meeting held on 2.6.2025 under the chairmanship of Hon'ble  Home  and  Cooperation  Minister,  Food  Corporation  of  India  (FCI)  has  been entrusted to identify PACS, provide hiring assurance, and ensure the annual hiring of these warehouses. The following progress has been made:

- In Phase I, FCI has identified 216 potential locations for hiring of godowns of 2500 MT and above (1671 MT and above for North Eastern and Hilly areas)
- About 26.03 LMT Storage requirement has been mapped by FCI in these potential 216 locations in 18 States /UTs.
- States have identified 173 PACS/Cooperative Societies and are actively identifying additional PACS/Cooperative Societies

## 9. PACS as Common Service Centers (CSCs) for better access to e-services :

An MoU has been signed between the Ministry of Cooperation, the 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. So far, 52,018 PACS have started providing CSC services to rural citizens.

## 10. Formation of new Farmer Producer Organizations (FPOs) by PACS: Under the Central

Sector  Scheme  -  Formation  and  Promotion  of  10,000  Farmer  Producer  Organizations (FPOs), National Cooperative Development Corporation (NCDC)  is one of the Implementing Agencies designated by the Department of Agriculture and Farmers Welfare (DA&FW), Ministry of Agriculture and Farmers Welfare, Government of India, towards the formation and promotion of FPOs under the Cooperative Societies Act. The target for the formation and promotion of 746 FPOs was assigned by DA&FW to NCDC, and NCDC registered 746 FPOs in the cooperative sector.

Thereafter, with the initiative of Ministry of Cooperation, Government of India, additional target of Farmer Producer Organizations (FPOs) was allocated to NCDC by Ministry of Agriculture and Farmers Welfare, GoI, for formation and promotion of FPOs in cooperative sector through strengthening of PACS under the scheme and NCDC got target of 1117 FPOs and registered/onboarded 1117 FPOs through the members of PACS. This will help provide farmers  with  necessary  market  linkages  and  a  fair  and  remunerative  process  for  their produce.

NCDC has disbursed ₹245 crore to FPOs/Cluster-Based Business Organizations (CBBOs) under the scheme as of 15.01.2026.

11. PACS given priority for Retail  Petrol/  Diesel  outlets :  The  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), 394 PACS from 28 States/UTs have applied online for retail petrol/ diesel outlets.
12. PACS  permitted  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,  115 wholesale consumer pump licensee PACS from 5 States have given consent for conversion into Retail Outlets, out of which 62 PACS have been commissioned by the OMCs.
13. PACS eligible for LPG Distributorship for diversifying its activities : The 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.
14. PACS  as  PM  Bharatiya  Jan  Aushadhi  Kendra  for  improving  access  to  generic medicines at the rural level : PACS have been allowed to operate Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs), which will provide an additional income source to them and ease the access to quality generic medicines for rural citizens. So far, 4,192 PACS/ cooperative societies have applied online for PMBJKs, out of which 4,177 PACS have been given initial approval by the Pharmaceutical & Medical Devices Bureau of India (PMBI), and 814 PACS have received store codes from PMBI, which are ready to function as PM Bhartiya Jan Aushadhi Kendras.
15. 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 the States/ UTs, as on 27 th November, 2025, a total of 38,190 PACS are functioning as PMKSK.
16. 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, 762 PACS have been identified/ selected by 10 States/ UTs to provide O&M services at the Panchayat/ Village level.
17. Convergence of PM-KUSUM at PACS level : Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms.
18. Convergence  of  PM  Surya  Ghar  -  Muft  Bijli  Yojana  (PMSG-MBY)  at  the Cooperative Societies level: The initiative seeks to accelerate the adoption of clean and

low-cost  rooftop  solar  energy  while  leveraging  the  extensive  grassroots  presence  of cooperative societies. 100 towns have been shortlisted for focused implementation of this initiative.

19. 19. 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, Micro-ATMs 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 19th September 2024 & 12,624 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Gujarat.
20. 20. Rupay Kisan Credit Card to Members of Milk Cooperatives: 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 19th September 2024 & 16,48,105 Rupay KCC have been distributed in the State of Gujarat.
21. Formation of Fish Farmer Producer Organization (FFPO): To provide market linkage and processing facilities to fishermen, NCDC registered 70 FFPOs in the initial phase. In addition,  the  Department  of  Fisheries,  Government  of  India,  allocated  the  work  of converting  1000  existing  fisheries  cooperative  societies  into  FFPOs  to  the  National Cooperative Development Corporation. National Cooperative Development Corporation has identified 1000 Primary Fisheries Cooperatives Societies to strengthen as FFPOs, with an approved outlay of Rs 280.65 crore. A business plan for the selected societies is being prepared by the CBBOs. NCDC has disbursed ₹105 crore to FFPOs/CBBOs under the scheme.
22. 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  19.09.2024  by  Hon'ble  Home  &  Cooperation  Minister  in  the  presence  of  Hon'ble Minister of Fisheries, Animal Husbandry and Dairying. On 25.12.2024, the Hon'ble Home & Cooperation  Minister,  in  the  presence  of  the  Hon'ble  Minister  of  Fisheries, Animal Husbandry and Dairying, inaugurated 6,600 newly set up Dairy Cooperative Societies. So far, 21,768 DCSs have been registered in 31 states/UTs.
23. 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 the 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 42,87,484 farmers have already registered on the e-Samyukti portal of NCCF. Similarly, 13,90,862 farmers have registered themselves on the e-Samridhi portal of NAFED.

## B. Strengthening the Cooperative Banks

24. Urban Cooperative Banks (UCBs) have been allowed to open new branches to expand their business: UCBs can now open new branches up to 15% (maximum 10 branches) of the existing number of branches in the previous financial year without prior approval of the RBI.
25. UCBs have been allowed by the RBI to offer doorstep services to their customers: Doorstep 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.
26. Notification of Scheduling norms for including Urban Cooperative Banks: UCBs that are in compliance with the Eligibility Criteria for Business Authorisation 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.
27. A Nodal Officer designated in RBI for regular interaction with UCBs: To meet the long-pending  demand  of  the  cooperative  sector  for  closer  coordination  and  focused interaction, RBI has notified a nodal officer.
28. Relief for Urban Cooperative Societies (UCBs) by reducing PSL target from 75% to 60%: The Reserve Bank of India has provided relief to Urban Co-operative Banks (UCBs) by reducing the Priority Sector Lending (PSL) target from the earlier level of 75 per cent to 60 per cent. This relaxation has eased compliance pressures on UCBs and provided them with greater operational flexibility in managing their lending portfolios.
29. Housing  loan  limit  for  Urban  Cooperative  Banks  increased  from  10%  to  25%: Housing loan limit for members of Urban Cooperative Banks has been increased from 10% of assets to 25% (up to Rs 3 crore) of their total loans & advances.
30. Relief in sub-limit of 12% sub-limit (weaker sections) by withdrawing of target of ₹ 2 lakh for women loan repayment: Removal of the target of ₹2 lakh for women borrowers under the 12% sub-limit for weaker sections simplifies PSL compliance and provides UCBs greater operational freedom in meeting PSL obligations.
31. Relief to Urban Cooperative Institutions by increasing 50% loan limit from ₹ 1 crore to ₹ 3 crore: The loan and advances exposure limit for Urban Cooperative Banks (UCBs) at 50% of loans and advances has been increased from ₹1 crore to ₹3 crore, which helps them meet the higher credit demands of individual borrowers, supports business growth and improves their competitiveness in the retail and SME lending segments.
32. Monetary  ceiling  for  Gold  Loan  has  been  removed  by  RBI: RBI  has  removed  the monetary ceiling from Rs. 2 lakhs for cooperative Banks at par with Commercial Banks.
33. Umbrella Organization for Urban Cooperative Banks: National Federation of Urban Co-operative  Banks  and  Credit  Societies  Ltd.  (NAFCUB)  has  been  established  on  the approval  of  the  RBI  as  an  Umbrella  Organization  (UO)  for  the  UCB  sector,  which  is providing necessary IT infrastructure and operational support to around 1,500 UCBs. It has launched various services like Digi Loan and Digi Pay.
34. RBI extended the glide path for Security Receipts from FY 2025-26 to FY 2027-28: RBI, vide circular dated 24.02.2025, has provided an additional two years for provisioning of non-performing assets through Asset Reconstruction Company for better management of capital and liquidity in urban co-operative banks so that these banks can minimize the losses on stressed assets.
35. 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.
36. Higher Housing Loan Limits: Reserve Bank of India has increased the individual housing loan limit for rural co-operative banks by two and a half times to Rs. 75 lakh and enabled them to lend to real estate up to 5% of total exposure.
37. License  fee  reduced  for  Cooperative  Banks  for  AePS: 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 are now to get the facility free of cost for the first three months of the pre-production phase. With this, members of onboarded Banks are now able to get the facility of banking at their home through biometrics.
38. UIDAI on 01.08.2025 has introduced a new framework for onboarding of Cooperative Banks on the Aadhaar Enabled Payment System (AePS) . Now, only StCBs are required

to onboard as Authentication User Agencies (AUA)/eKYC User Agencies (KUA); DCCBs will be allowed to use it through State Cooperative Bank as sub AUA/KUA.

39. Non-scheduled  UCBs,  StCBs,  and  DCCBs  notified  as Member  Lending  Institutions (MLIs)  in  the  CGTMSE  Scheme to  increase  the  share  of  cooperatives  in  lending: Cooperative banks are now able to take advantage of risk coverage up to 85 percent on the loans given. Also, cooperative sector enterprises are able to get collateral-free loans from cooperative banks now. CGTMSE rationalized the eligibility criteria from 5% Gross NPA or less to 7% Gross NPA or less for registration of Cooperative Banks as Member Lending Institutions (MLIs) under the Scheme.
40. Banking Regulation Act is amended by the Government to make the term of the Board of Directors  of  Cooperative  Banks  as  per  the  constitution (maximum  10  consecutive years).
41. Limit for Agricultural Cooperative Societies (Dairy) under Priority Sector Guidelines increased from ₹5 crore to ₹10 crore: RBI has increased the priority sector lending limit for Agricultural  Cooperative  Societies  (Dairy)  from  ₹5  crore  to  ₹10  crore  vide  Master Direction dated 24.03.2025. This move enables banks to provide more credit support to Agricultural Cooperative Societies (Dairy), thereby strengthening agricultural infrastructure and boosting rural credit flow.
42. Sahakar  Sarathi  (Shared  Service  Entity): Sahakar  Sarathi  (Shared  Service  Entity) Private Limited has been established after approval of the RBI to provide technological services to Rural Cooperative Banks (RCBs) and their strengthening. This has launched 13 services for the Rural Cooperative Banking Sector.
43. RBI vide its  Notification  dated  07.10.2025,  has  included  rural  cooperative  banks  in  its Integrated Ombudsman Scheme . This will bring more transparency and accountability to the functions of rural cooperative banks.
44. RBI  vide  Master  Direction  dated  04.12  2025,  has  allowed State  Cooperative  Banks (StCBs)  and  District  Central  Cooperative  Banks  (DCCBs) to  open  new  branches (maximum 10) through an automatic route . StCBs & DCCBs, subject to eligibility, will now be able to open new branches without delay and can expand their business.
45. RBI vide Master  Direction  dated  28.11.2025,  has  granted  relaxation  to  the Rural and Urban cooperative banks in financial norms for providing modern banking services . The previous requirements of Gross NPA being less than 7% and Net NPA not exceeding 3%, and the net profit criterion have been removed. Now the cooperative banks can easily provide modern banking services to their customers.
46. RBI vide Master Direction dated 04.12.2025, has issued Eligibility Criteria norms for Business Authorisation (ECBA), which will supersede the previous FSWM provisions .

The clause regarding no penalties in the last two years has been removed from these norms. Now the Cooperative Banks will be able to easily open new branches and expand their business.

47. RBI vide letter dated 07.01.2026 has issued clarification in reference to Section 20 of the BR Act, due  to  which  the Directors  of  Rural  Cooperative  Banks  and  their  related Cooperative  Societies  are  now  eligible  to  avail  loans from  their  concerned  State Cooperative Banks & District Central Cooperative Banks, subject to stipulated conditions.
48. RBI vide Notification dated 19.01.2026 has included National Cooperative Development Corporation (NCDC) as an eligible entity under the on-lending provisions of the PSL framework . Now the loan extended by the Banks to NCDC for on-lending to cooperative societies for purposes like Agriculture, Housing, Social Infrastructure, etc., will fall under the PSL category.
49. RBI has granted relaxation to specified borrowers like IFFCO to borrow more than 50% of their working capital requirements (incremental funds) from the banks.
50. The Committee of Secretaries, chaired by the Cabinet Secretary, has recommended the inclusion of Cooperative Banks as participant institutions under various schemes of the Government of India. Various Ministries/Departments, like the Department of Animal Husbandry and Dairying has also revised their scheme guidelines to include cooperative banks.
51. With  a  view  to  onboarding  co-operative  banks as  Corporate Agents  for  undertaking insurance business , the Ministry of Cooperation has requested all States/Union Territories and  co-operative  banks  to  associate  as  Corporate  Agents  of  the  IFFCO  joint  venture company.
52. With a view to mitigating cyber fraud and ensuring prompt reporting and response, the Ministry of Cooperation has requested all States/Union Territories and co-operative banks to onboard the I4C and NCRP portals. More than 600 cooperative banks have onboarded on I4C.
53. A Task Force has been constituted under NABARD , in accordance with the mandate of the National Cooperation Policy, 2025, to provide necessary inputs for policy formulation and to address issues and challenges faced by the Rural Co-operative Banking sector.
54. The  Ministry  has  constituted a  Task  Force  under  NAFCUB  on  'Transformation  of Urban  Cooperative  Banks  and  Cooperative  Credit  Societies' .  The  task  force  has submitted three reports.
55. On  the  request  of  the  Ministry,  NABARD  has  submitted  a report  on  Reforms, Restructuring,  and  innovation  in  Agriculture  and  Rural  Development  Banks (ARDBs).
56. The Ministry has completed a detailed study through IRMA for National Cooperative Agriculture & Rural Development Banks' Federation Ltd. (NAFCARD), resulting in an approved Action Plan that guides lending expansion, promotes non-farm sector activities, and strengthens cooperative governance.
57. The Ministry has completed a strategic study to elevate NAFSCOB's role in Amrit Kaal (2022-2047). It outlines reforms for cooperative credit, digital integration, financial service diversification, and institutional strengthening. With emphasis on governance, state-level capacity  building,  and  inclusive  outreach,  the  roadmap  positions  NAFSCOB  to  lead cooperative banking and drive sustainable rural development across India.

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

58. 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.
59. MAT reduced for cooperatives from 18.5% to 15%: With this provision, now there is parity between Cooperative Societies and Companies in this regard.
60. Relief in cash transactions under section 269ST of the Income Tax Act: 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.
61. Tax cut for new manufacturing Cooperative societies: The 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.
62. Increase  in  limit  of  Cash  Deposits  and  Payments  by  PACS  and  PCARDBs: The Government has enhanced the limit for Cash Deposits and Payments 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 the business, and benefit members of their societies.
63. Increase in limit of Loan and Loan Repayments in Cash by PACS and PCARDBs: The Government has enhanced the limit for Loan and Loan Repayments in Cash 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 the business, and benefit members of their societies.

## 64. Increase in the limit of Tax Deducted at Source (TDS) in Cash Withdrawal

The Government, through the Budget 2023-24, 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 they will be able to use to work for the benefit of their members.

## 65. Enabling cooperatives to obtain low or nil TDS certificates

W.e.f. 01.10.2024, the S.194Q has been brought under the ambit of S. 197, enabling the taxpayers to apply for a lower/nil deduction certificate in respect of transactions that require TDS compliance u/s. 194Q.

## 66. TCS on the sale of goods under S.206C(1H) has been made ineffective

A sunset clause has been inserted in Section 206C(1H), rendering the provisions of the said section inapplicable with effect from 1st April 2025.

- D. Revival of Cooperative Sugar MillsMinistry, updated

## 67. Relief from Income Tax to Sugar Cooperative Mills :

The  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 a Fair and Remunerative or State Advised Price, from April 2016 onwards.

68. Resolution of decades-old pending issues related to Income Tax of Sugar Cooperative Mills : The 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 before the assessment year 2016-17, giving them a relief of more than Rs.46,000 crore.
69. Rs.10,000  crore  loan  scheme  for  strengthening  of  Sugar  Cooperative  Mills :  The Government launched a scheme through NCDC for setting up ethanol plants, cogeneration plants, or for working capital, or for all three purposes. The Ministry has released Rs.1000 crore to NCDC (Rs.500 crore in FY 2022-23 and Rs.500 crore in FY 2024-25) under the scheme, and NCDC has released Rs.10,005 crore to 56 CSMs.
70. 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  the Government of India under the Ethanol Blending Programme (EBP).
71. Strengthening of Cooperative Sugar Mills by converting their molasses-based ethanol plants into multi-feed ethanol plants:

Ministry  of  Cooperation  has  taken  the  initiative  in  consultation  with  the  National Federation of Cooperative Sugar Factories Ltd. (NFCSFL) for the 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 throughout the year. The Government of India has prioritized maize for the 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. While NCDC has agreed to provide a loan for this purpose, DFPD has launched a scheme exclusively for cooperative sugar mills to provide  interest  subvention  at  the  rate  of  6%  per  annum  or  50%  of  the  actual  interest, whichever is lower, for a period of 5 years on their loan. Further, OMCs shall give Priority1 to CSMs, who will benefit from the Interest Subvention Scheme, for ethanol procurement, enabling transition from single feedstock to multi-feedstock.

72. Reduction in GST on molasses from 28% to 5%: The 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.

## 73. Revival of closed Cooperative Sugar Mills:

Indian Potash Limited, on the suggestions of the Ministry of Cooperation, has taken an initiative for the revival of closed Cooperative Sugar Mills. On 08.03.2025, Hon'ble Home and Cooperation Minister performed the 'Bhoomi Pujan' ceremony for the revival and modernization of Shri Bileshwar Khand Udyog Khedut Sahakari Mandali Ltd., Kodinar, and Shri Talala Taluka Sahakari Khand Udhyog Mandali Ltd., Talala. In addition to this, IPL is also taking steps for the revival of Shri Valsad Sahakari Khand Udhyog Mandali, Ltd., Valsad. These steps will benefit thousands of farmers in the area where the above cooperative Sugar Mills are located.

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

## 74. 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  to  focus  on  production,  testing,  certification,  procurement,  processing, storage, branding, labelling and packaging of all two generations of seeds i.e. foundation and  certified,  through  PACS  by  leveraging  various  schemes  and  policies  of  different ministries  of  the  Government  of  India.    BBSSL  has  launched  its  seed  under  the  brand 'Bharat  Beej'.    So  far,  33,077  PACS/  Cooperative  Societies  have  become  members  of BBSSL

## 75. 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 provide institutional support for aggregation, certification, testing, procurement,  storage, processing, branding, labelling, packaging,  logistic facilities, marketing of organic products and facilitate in arranging financial assistance to the organic farmers through its member Cooperatives including PACS/FPOs along with promotional and developmental activities of organic products with the help of various schemes and agencies  of  the  Government.  So  far,  11,823  PACS/  cooperative  societies  have  become members of NCOL. NCOL has launched its products under the brand name of 'Bharat Organics'.  So  far    28  organic  products  (Arhar  Dal,  Brown  Chana,  Chana  Dal,  Kabuli Chana, Masoor Malka, Masoor Split, Masoor Whole, Moong Dhuli, Moong Split, Moong Whole, Rajma Chitra, Urad Dal, Urad Gota, Urad Split, Urad Whole, Wheat Atta, Jaggery Cube,  Jaggery  Powder,  Brown  Sugar,  Khandsari  Sugar,  Coriander  Powder,  Turmeric Powder,  Fenugreek,  Coriander  Whole,  Apple  Cider  Vinegar,  Organic  Goan  Cashews, Organic Kashmiri Almonds, Organic Kashmiri Walnuts) under Bharat Organics brand are available in Delhi-NCR and Bangaluru. Bharat Organics products are 100% batch tested for 245+ pesticides in accredited laboratories.

## 76. New National Multi-State Cooperative Export Society for promoting exports :

Government has established a new apex multi-state cooperative export society under the Multi State Cooperative Societies (MSCS) Act, 2002, namely National Cooperative Export Limited (NCEL) as an umbrella organization to focus on exporting the surpluses available in  the  Indian  cooperative  sector  by  accessing  wider  markets  beyond  the  geographical contours of the country, thereby, increasing the demand  of Indian Cooperative products/services across the globe and fetch best possible prices for such products/services. It  will  promote  exports  through  various  activities,  including  procurement,  storage, processing, marketing, branding, labelling, packaging, certification, research and development, etc, and trading of all types of goods and services produced by cooperative societies.  So  far,  13,890  PACS/  cooperative  societies  have  become  members  of  NCEL. NCEL has so far exported approximately 13.84 LMT of 40 Agri commodities like Rice, Wheat, Maize, Sugar, Onion, Cumin seed, etc., worth Rs. 5,577.84 crore to 29 countries. During the financial year 2023-24, a dividend of 20% was provided by NCEL to its member cooperatives.

## 77. Establishment of Beej Anusandhan Kendra (BAK):

Hon'ble Home and Cooperation Minister on 6th April 2025 laid the foundation stone for the Beej Anusandhan Kendra, a state-of-the-art research center in Kalol, Gujarat. 'Beej Anusandhan Kendra' will play a pivotal role in enhancing farmers' economic prosperity while also actively promoting innovation and inclusive growth in the agriculture sector. International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), the Indian Farmers  Fertiliser  Cooperative  Limited  (IFFCO),  and  Bhartiya  Beej  Sahkari  Samiti Limited (BBSSL) have formally entered into a Tripartite Service Agreement on 3rd June 2025 to establish the Beej Anusandhan Kendra.

78. Initiative to set up tissue culture facilities for Bananas: Due to the availability of bananas throughout the year, affordability, taste, nutritional value, and medicinal properties, bananas are in high demand both domestically and internationally, with significant export potential. Bharatiya Beej Sahakari Limited (BBSSL) has decided to set up a Tissue Culture Facility (TCF)  for  banana  in  the  States  of  Andhra  Pradesh,  Maharashtra,  and  Uttar  Pradesh. Through these facilities, BBSSL will maintain 'true to the type' mother plants, produce tissue-cultured banana saplings/plantlets, and distribute 100% disease-free saplings/plantlets to farmers. This will ensure high-quality planting materials are available to farmers and that sustainable growth in their income is ensured.
79. Initiative to set up tissue culture facilities for Potato: An MoU was signed between BBSSL and Banas Dairy to promote potato tissue culture in Gujarat and Uttar Pradesh
80. Initiative  to  conserve  and  preserve  traditional  natural  seeds: Growing  interest  of farmers towards chemical-free Indian traditional natural farming methods, in all likelihood, will  increase  the  demand  for  traditional  natural  seeds.  Therefore,  concerted  effort  is required for the conservation, reproduction, and promotion of these seeds. "Bhartiya Beej Sahakari  Samiti  Limited  (BBSSL)"  has  taken  the  initiative  to  identify  natural  seeds  of indigenous plant variants, including but not restricted to seeds of food grain, vegetables, fruits,  etc.,  and  to  develop  a  system  for  their  preservation,  conservation,  breeding, production, distribution, promotion, and all other activities needed. State Governments and Technical institutions engaged in the area of promotion of natural indigenous seeds have been requested to provide every possible administrative, institutional, and technical support to BBSSL to advance this important work at the national level.

## C. Capacity Building in Cooperatives

## 81. Establishment of Cooperative University:

The Ministry of Cooperation has established a national-level university in the cooperative sector, namely, 'Tribhuvan' Sahkari University (TSU), by converting the Institute of Rural Management Anand  (IRMA).  It  has  been  established  and  declared  as  an  institution  of national importance through an Act of Parliament.

In this regard, 'Tribhuvan' Sahkari University Bill, 2025 was passed by the Lok Sabha and Rajya  Sabha  on  26th  March,2025  and  1 st April,2025  respectively.  Further,  the  Gazette notification  for  commencement  of  the Act  and  for  establishment  of  the  university  was issued on 4th April, 2025, establishing the university w.e.f. 6th April 2025.

Since the University was established after converting an existing institute, it has become functional  immediately.  Further,  the  appointment  of  the  officiating  Vice-Chancellor, Registrar & Finance Officer has been made. The Governing Board of the University and the Executive Council have also been constituted, and Statutes of the University have been notified by the Ministry. Ordinances of the University have also been notified by the TSU.

Moreover, the land for the construction of additional infrastructure has also been allotted by the Government of Gujarat on a lease basis for 50 years, and the foundation stone laying has also been done for the new building of the University on 5 th July 2025.

82. Launch of New Courses by TSU and Affiliation :  TSU has launched three new MBA programs (Agribusiness Management, Cooperative Management & Cooperative Banking & Finance) from the current academic year.

Regarding the affiliation with the University, seven institutes, including Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM) Pune, have been affiliated, and over 25 applications are currently under review by the University.

83. The Ministry has completed a comprehensive national-level study on the National Labour Cooperative Federation (NLCF) through AFC India Ltd., generating strategic recommendations  to reposition NLCF  as  a  business-driven entity with  improved infrastructure, diversified services, and robust training initiatives.
84. The Ministry has completed an Impact Assessment Study to evaluate the effectiveness of measures undertaken by the Ministry, generating actionable insights  to further  enhance cooperative sector resilience and inclusivity through LINAC.
85. The  Ministry  of  Cooperation  has  commissioned  a  strategic  study  to  assess  NCUI's (National Cooperative Union of India) growth potential during Amrit Kaal (2022-2047), to be conducted by Agricultural Finance Corporation (AFC) India Ltd. The study aims to ensure compliance with Section 24 of the MSCS Act, modernize cooperative education, develop a 25-year growth roadmap, and strengthen NCUI's governance, outreach, training infrastructure, and role in cooperative sector development nationwide.
86. The Ministry of Cooperation has launched a national study through AFC India Ltd. to boost FISHCOPFED's (National Federation of Fishers Coop. Ltd) business growth during Amrit Kaal (2022-2047). It aims to achieve 25% growth via diversification, governance reforms, digital outreach, and cooperative strengthening. Covering  six states and multiple stakeholder levels, the study will generate strategic plans to modernize  fisheries cooperatives and enhance their socio-economic impact nationwide.

## 87. Special Module on Cooperatives in India:

Under the guidance of the Ministry of Cooperation, and in consultation with the National Council  of  Educational  Research  and  Training  (NCERT),  the  National  Council  for Cooperative Training (NCCT) has designed and prepared a Special Module on Cooperation which aims to bring awareness among school students about the role of cooperatives in nation building so that they are encouraged to choose cooperatives as a career. The Special Module will be introduced for the Secondary stage students of NCERT Schools.

## 88. Cooperatives in Schools:

NCERT has included a chapter on cooperatives for Class 6 in its school curriculum, under persuasion by NCCT with the direction of the Ministry of Cooperation, which helps the class students to be aware of the cooperative movement in brief.

On the directions of the MoC, the NCCT has constituted a committee for the development of NEP-aligned, age-appropriate, grade-specific Special Modules on Cooperation for the students of Classes VI to X.

89. Strengthening of Finance: A new Object Head 'Grants-in-Aid General' for NCCT has been opened by the Ministry of Cooperation, which will enable NCCT to continue crucial work  in  Cooperative  Training  and  Education  to  fulfill  the  mission  of  strengthening cooperation.  Earlier, most of the funds for training purposes were met out of the Training and Development Fund (TDF), which is meant for meeting the liabilities on repair and infrastructure development.  Since this was not feasible in the long run, opening a new head will ease the pressure on the TDF Fund, and it will be available for the purposes it is meant.
90. Constitution  of  Building  Sub-Committee  for  each  Institute  of  NCCT  to  ensure  timely Building infrastructure Development.
91. Utilisation  of  Training  Development  Fund/  Building  Fund: Sanction  accorded  to various Institutes to utilise their Training Development Fund/ Building Fund for renovation / Repair of Building infrastructure and purchase of Fixed Assets (office equipment, etc).
92. A  new  3-storied  International  Hostel  has  been  added  to  the  existing  infrastructure  at Vaikunth  Mehta  National  Institute  of  Cooperative  Management  (VAMNICOM)  with  a capacity of 50 twin-sharing rooms for participants and 3 no. of VIP suites. The hostel also has a Kitchen, a Dining Hall, a Reading room, a classroom of 50 capacity, a discussion room, a gymnasium, and an office space. This building has been constructed out of the Capital Grant of Rs.30 crore received from the Ministry of Cooperation, Govt. of India.

## 93. New Course:

VAMNICOM has initiated the launch of a new programme, PGDM-Cooperation, for the Academic  year  2025,  affiliated  to AICTE,  New  Delhi,  with  an  intake  capacity  of  30 students.

## 94. Pilot Project - comprehensive training for PACS :

Pilot  Project  was  undertaken  for  the  training  of  Members,  Board  of  Directors,  Chief Executive  Officers/  Secretaries  of  PACS  in  four  districts  of  four  states,  namely:  Una (Himachal Pradesh), Jodhpur (Rajasthan), Sambalpur (Odisha), and Theni (Tamil Nadu). The contents of the training included topics like concept and benefits of cooperatives, roles and responsibilities of the above-mentioned categories of cooperative personnel, Model Bye-Laws with opportunities for business diversification, etc. Under the project, a total of

85,219 participants belonging to 284 PACS were trained in 4 States. Wide publicity was given by posting the photographs and content on all social media platforms.

## 95. Training Programme for PACS for CSC Portal:

NCCT,  in  collaboration  with  CSC  e-Governance  Services  India  Limited,  conducted Training  Programmes  for  PACS  on-boarded  into  the  CSC  Portal. The  objective  of  the Training programmes was to train the Secretaries/ Computer operators of 30,000 PACS for diversifying the business activities of Primary Agricultural Cooperative Societies through 300 Services of the CSC portal. A total of 648 programmes were conducted and trained 30210 PACS participants from 564 districts spread across 25 states.

Recently, a meeting was held by Secretary, MoC, in which it was decided that the CSC, in collaboration with the NCCT, may undertake another training project for the activation of 9007 PACS already on-boarded on the CSC Portal and also train 15548 PACS for their onboarding on the CSC Portal. The initiative is at the discussion stage with CSC, identification of PACS is underway, and other modalities of training programmes are being worked out in consultation with CSC.

## 96. Training Programme for Newly Established Multi-Purpose Cooperative Societies:

During  July  2025,  the  NCCT  started  conducting  the  training  programmes  for  newly established M-PACS at the direction of the Ministry. As of 20.06.2025, a total of 22283 MPCS have been established in the country (As per the NCD Portal), all of which may be covered for training purposes.

As on 31.12.2025, a total of 222 training programmes have been conducted in which 10038 participants have been trained.

## 97. Capacity Building and Training Programmes under PMFBY/ RWBCIS:

A Memorandum of Understanding (MoU) was signed between the National Council for Cooperative  Training  (NCCT)  and  the  Crop  Insurance  Division  of  the  Department  of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare (MoA&FW), GoI, New Delhi, on 20.01.2025.  The objective of the MoU is to enable a larger ecosystem for creating a capacity-building and knowledge management framework under Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather-Based Crop Insurance Scheme (RWBCIS) Schemes.  Accordingly, NCCT has submitted a proposal to MoA&FW for conducting 200 training programmes and to train 10,000 participants of PACS, which is  under  their  consideration  at  present. The  MoA&FW  has  approved  the proposal of NCCT to be implemented in phases.

## 98. Launch of Academic Journal -

RICM,  Chandigarh,  has  launched  a  biannual  peer-reviewed  journal  titled  'Sahkarita Anusandhan - A Multidisciplinary  Journal  of  Social  Science'  to  promote  research  and knowledge dissemination in the field of cooperatives and social sciences.

The 1 st issue of the Journal has been released in April, 2025. The 2 nd issue of the journal was released in December, 2025.

## 99. Revival of PGDM-ABM Programme:

RICM,  Chandigarh,  has  taken  the  initiative  to  revive  the  Post  Graduate  Diploma  in Management  - Agri-Business  Management  (PGDM-ABM),  duly  approved  by AICTE. Process  for  starting  1 st Batch  of  the  PGDM-ABM  programme,  like  advertisement, admission, etc., has been started in December, 2025.

100. Recently, a meeting was held in which it was decided that the PMBI, in collaboration with the NCCT, may undertake a training project to operationalise 300 new PMBJKs through PACS with Store codes. Further action in the matter has been initiated at the NCCT level.

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

## 101. Computerization of the Central Registrar's Office :

The  Central  Registrar's  office  has  been  computerized  to  create  a  digital  ecosystem  for Multi-State Cooperative Societies, which is assisting in processing applications and service requests in a time-bound manner.

## 102. Scheme for computerization of the office of Registrar of Cooperative Societies (RCSs) in States/ Union Territories:

Centrally sponsored project for 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 project aims to  enhance  the  ease  of  doing  business  for  Cooperative  Societies  and  create  a  digital ecosystem  for  transparent,  paperless  interaction  of  cooperative  societies  with  the  RCS offices in all States/Union Territories. Under the project, grants are being provided to the States/  UTs  for  procurement  of  hardware,  development  of  software,  maintenance  & upgradation of software, etc. The software developed under this scheme will be as per the Cooperative Acts of the respective States/UTs. During the financial years 2023-24, 202425, and 2025-26 (up to 20 th January, 2026), 35 States/UTs have submitted their proposals, and Rs 26.82 crore has been released as the Government of India's share to States/UTs.

## 103.

- Computerization  of  Agriculture  and  Rural  Development  Banks  (ARDBs): To strengthen the long-term cooperative credit structure, the project of computerization of 1,867  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 10.11 crore has been released to 10 States/UTs in FY 2023-24, FY 24-25, and FY 2025-26 for procurement of hardware, digitization, and setting up of support system.

## H. Steps taken by National Cooperative Development Corporation (NCDC)

104. Increase  in  loan  disbursement: Disbursement  of  financial  assistance  by  NCDC  has increased almost 4 times from ₹24,733.20 crore in FY 2020-21 to ₹95,182.84 crore in FY 2024-25. NCDC has achieved more than 40% CAGR in disbursement during these four years.  During  FY  2025-26,  NCDC  has  sanctioned  Rs.1,40,082  crore  and  disbursed  Rs. 1,00,000 crore as on 15.01.2026.
105. Introduction of Floating Interest Rate: NCDC took a significant step in reforming its financial system by introducing a floating interest rate. This step resulted in a reduction of the term loan interest rate by about 2%. A floating interest rate means that the interest rate changes depending on the market conditions and other financial factors, thereby providing the benefit of a lower interest rate to the end borrowers.
106. Adoption of Differential Rate: NCDC adopted the differential rate mechanism, under which different interest  rates are provided to different loan borrowers. This mechanism customizes the loan rate, keeping in view the financial status of the borrowers and their capacity, so that the borrowers get financial assistance at better rates according to their situation.
107. Registration under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Credit Guarantee Scheme for FPO (CGSFPO)&Credit Guarantee Fund Trust  for  Animal  Husbandry  and  Dairying  (CGFT-AHD): This step enables cooperatives to get collateral-free loans from NCDC.
108. MoU between NDDB and NCDC: NCDC  and  National  Dairy  Development  Board  (NDDB)  signed  a  Memorandum  of Understanding (MoU) on financing, training, and capacity building of dairy cooperatives. Under  this  agreement,  both  institutions  will  together  provide  financial  and  technical assistance to empower small producers in the dairy sector, thereby increasing the income

of farmers and strengthening dairy societies.

109. Appraisal of large projects of other lenders by NCDC: NCDC has started the appraisal of large projects of other lenders who do not have the required expertise. For instance, NCDC  appraised  three  dairy  projects  for  Gujarat  State  Cooperative  Bank,  wherein  a detailed review and evaluation of the projects was done.
110. Expansion  of  geographical  reach: NCDC  has  expanded  its  geographical  reach  by opening a new Regional Office at Vijayawada (Andhra Pradesh) and new 9 Sub-offices in Jammu & Kashmir,  Ladakh,  Sikkim,  Manipur,  Mizoram, Tripura, Arunachal  Pradesh, Meghalaya and Nagaland.
111. Appointment of Young Professionals: NCDC has appointed young professionals with expertise in various fields. This includes 11 CA/CMA/Inter, 30 MBA, and other young professionals. This move is designed to enhance the Corporation's efficiency.

112.

Sahakar Taxi Cooperative Limited (India's first cooperative-led Mobility platform):

Sahakar Taxi Cooperative Limited is an innovative, cooperative-based mobility solution designed to empower drivers and provide affordable, reliable transportation to the public. Rooted in the principles of cooperation, transparency, and shared ownership, Sahakar Taxi stands as a people-centric alternative to traditional ride-hailing platforms. The project is promoted by National Cooperative Development Corporation (NCDC) alongwith seven other  leading  organisations:  Indian  Farmers  Fertiliser  Cooperative  Limited  (IFFCO), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Anand Milk  Union  Limited  (AMUL),  Krishak  Bharati  Cooperative  Limited  (KRIBHCO), National  Dairy  Development  Board  (NDDB),  National  Cooperative  Export  Limited (NCEL), and National  Bank for Agriculture and Rural Development  (NABARD). This project has been named 'Bharat Taxi'.  After completing the requisite formalities, 'Bharat Taxi' will be launched in February 2026.

113. Grant-in-aid to NCDC: The Cabinet, in its meeting held on 31.07.2025, has approved a grant of ₹2000 crore to NCDC. Based on receipt of ₹2000 crore from the Government over 4 years, NCDC will be able to raise ₹20,000 crore from the market. These funds will be used by NCDC for providing long-term and working capital loans to cooperative sectors such as dairy, poultry, fisheries, sugar, textiles, food processing, storage and cold chain, labour cooperatives, women cooperatives, etc. Under the scheme, NCDC provides financial assistance at competitive interest rates. Till 16.01.2026, the Ministry has assigned Rs. 375 crore to NDC under the Scheme. NCDC has disbursed more than Rs.5700 crore under the said scheme.
114. Cooperative  Intern: 385  cooperative  interns  are  being  recruited,  covering  all  Rural Cooperative Banks (State Cooperative Banks and District Cooperative Banks). The scheme aims to develop the overall capacity of cooperative organisations and promote digital and business skills at the grassroots level. The interns are being given a monthly remuneration of ₹25,000, which is reimbursed from the Cooperative Education Fund (CEF). NCDC is monitoring  the  implementation  of  the  scheme.  So  far,  232  trainees  have  joined  as  on 31.12.2025.

## I. Creation of National Cooperative Database (NCD)

115. New National Cooperative Database for an authentic and updated data repository: A comprehensive database of cooperatives in the country has been developed 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,  the  database includes  data  on  around  8.4  lakh  cooperatives  from  30  different  sectors,  involving approximately 32 crore members.
116. Cooperative Ranking Framework: The Government launched the Cooperative Ranking Framework on 24th January 2025 to assess and rank cooperatives, State-wise and sectorwise.  This  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 States/ UTs can generate rankings of Cooperative Societies, initially of 12 major sectors, namely PACS, Dairy, Fishery, Urban Cooperative Banks, Housing, Credit and Thrift, and Khadi and Gram Udyog,  Agro processing / Industrial, Handicraft, Handloom,  Textile &  Weavers, Multipurpose and Sugar at State, district, and block levels, through the NCD portal. This ranking  system  aims  to  enhance  transparency,  reliability,  and  competitiveness  among cooperative societies, ultimately fostering their growth.

117.

Facility for States / UTs to integrate State RCS portal with NCD portal through API:

The Ministry of Cooperation (MoC) developed a standard API for States to fetch the entire data  of  cooperative  societies  of  the  State  from  the  NCD  portal  to  their  respective  RCS portals, and shared the Standard API Specification Document and database schema with States on 27.05.2025. Subsequently, the Ministry shared a document on Push APIs (End Point APIs)  for  live,  event-driven  data  pushing  from  RCS  portals  to  the  NCD  Portal, enabling real-time updates and new registration data, on 22.09.2025. To further clarify the process, an advisory along with a comprehensive checklist was issued to all States / UTs on 14.11.2025. As per the integration plan, States/UTs need to ensure the development of reverse/pull API at their end and complete RCS computerization in accordance with the checklist for successful integration with the NCD portal. As of 20.01.2026, the States of Rajasthan, Chhattisgarh, Bihar, and Mizoram have completed integration with the NCD portal. This two-way integration will ensure synchronization of cooperative data across platforms.

## J. Policy and Outreach

118. National Cooperation Policy (NCP): The formulation of the New National Cooperation Policy (NCP) has been envisaged to fulfil the mandate of the Ministry of Cooperation "Sahakar se Samriddhi." It provides a roadmap for the systematic and holistic development of the cooperative sector. The National Cooperation Policy was unveiled on 24 July 2025 by the Hon'ble Home & Cooperation Minister. It has 6 strategic pillars, 16 objectives, and 83 recommendations. A 'National Steering Committee on Cooperation Policy' has been constituted  under  the  Chairmanship  of  the  Hon'ble  Minister  of  Cooperation.  Further,  a national-level  'Policy  Implementation and Monitoring Committee' has  been  constituted under the chairmanship of the Secretary, Ministry of Cooperation.
119. 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 all the stakeholders of the cooperative sector, emphasizing  transparency, policy reforms, and rural  economic

transformation through PACS. This Action Plan was launched by the Hon'ble Home and Cooperation Minister on 24.01.2025. For coordinated planning and implementation, the Ministry constituted the IYC-National Cooperative Committee, the IYC-National Execution Committee, and the IYC-State Apex Committees.

A  wide  range  of  activities  were  organized  throughout  the  year  with  the  objective  of increasing  transparency  &  accountability,  improving  operational  efficiency,  promoting cooperation among cooperatives, engagement of youth and women in cooperatives and strengthening cooperative governance through Model Bye-laws. These include organization  of  various  workshops,  tree  plantation  drives,  training  programs,  capacitybuilding sessions, exhibitions, sports events, walkathons, and awareness campaigns. These activities  were  being  conducted  at  various  stages  including  the  level  of  individual cooperative societies, district level, state level and national level.

During  IYC-2025,  extensive  awareness  and  outreach  campaigns  were  also  carried  out, ensuring  nationwide  visibility  of  the  IYC  logo  through  Indian  Railways  E-tickets, cooperative  product  packaging,  official  websites  and  official  communications.  Key national-level initiatives included the successful organization of the National Conference of Cooperation Ministers States/UTs on 30th June, 2025 and a national event on 06th July, 2025, on the occasion of the 4th Foundation Day of the Ministry of Cooperation at Anand, Gujarat.

120. Strengthening Media Outreach of the Ministry: Over the past four years, the Ministry of Cooperation has significantly strengthened its digital and media outreach to enhance public engagement and awareness about the cooperative sector. Leveraging both traditional and digital platforms, the Ministry, in collaboration with PIB, has consistently published press  releases  and  articles  in  leading  newspapers,  while  simultaneously  expanding  its presence  across  social  media. All  national-level  events  chaired  by  the  Hon'ble  Prime Minister  and  the  Hon'ble  Home  and  Cooperation  Minister  are  live-streamed  on  the Ministry's YouTube channel. Press releases, news updates, and achievements are regularly shared on the official website, with multilingual access for wider inclusion.

Today,  the  Ministry's  combined  following  across  platforms,  including  X  (Twitter), Facebook,  Instagram,  YouTube,  LinkedIn,  and  WhatsApp,  stands at over 6 lakh followers/subscribers, with total video viewership crossing 1.46 crore views on YouTube. Notably, the Ministry of Cooperation ranks top 10 among all Ministries on YouTube and website engagement and traffic, reflecting its growing digital impact.

In  addition,  the  Ministry  is  actively  encouraging  State  Governments,  Registrars  of Cooperative  Societies  (RCSs),  and  National  Cooperative  Federations  to  amplify  the Ministry's initiatives by sharing its posts and content through their respective social media handles, thereby ensuring broader and more coordinated communication outreach across the cooperative ecosystem. A dedicated portal has been also launched on 24.12.2025 for data repository  of  IYC  activities  and  media  outreach  activities  of  the  Ministry  and  its stakeholders.

121. Promotion  of  Cooperative  Awareness  through  Monthly  Publications: To  enhance outreach, awareness, and capacity-building within the cooperative sector, the Ministry of Cooperation is publishing two monthly magazines-Sahakar Uday (through IFFCO) and Sahakar Jagran (through NCUI)-since April 2023. Published in Hindi, English, and 11 regional languages, these magazines serve as vital platforms for disseminating information about key policies, schemes, initiatives, and success stories of the Ministry and the wider cooperative movement. Sahakar Uday has been publishing nearly 3 lakh copies monthly, while  Sahakar  Jagran  has  a  circulation  of  about  2.75  lakh  copies  every  month.  These publications  help  inform  and  empower  cooperative  members  at  the  grassroots  level  by providing timely, relevant, and inspirational content.

## K. Multi-State Cooperative Societies

122. 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  the  electoral  process,  and  incorporate  provisions  of  the  97th Constitutional Amendment in the Multi-State Cooperative Societies.
123. 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.
124. 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 elections in all MSCSs. Elections in more than 222 MSCS have been conducted successfully up to 31.12.2025.
125. Inclusion of Cooperatives as 'buyers' on GeM (Government e-Marketplace) portal: The Government has permitted cooperatives to register as 'buyer' on GeM, enabling them to  procure  goods  and  services  from  over  102.5  lakh  vendors  to  facilitate  economical purchases and greater transparency. So far, 727 cooperative societies have been onboarded on GeM as buyers.
126. 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 transparently. Disbursements have already started after proper identification and submission of  proof  of  their  deposits  and  claims.  So  far,  Rs.  8340.75  crore  have  been  disbursed  to 39,28,648 applicants.

## L. Other Initiatives

127. Enhancing market access to cooperative products through quick commerce platform of Swiggy Instamart : The Ministry of Cooperation has entered into an MoU with Swiggy

Limited  on  25.04.2025  to  collaborate  to  enhance  the  digital  and  market  integration  of cooperative products, facilitate policy discussions, and drive consumer engagement with the cooperative sector, with an aim to promote the Indian cooperative sector and realize the vision  of  'Sahkar  se  Samriddhi'.  The  purpose  of  this  MoU  is  to  establish  a  strategic partnership between MoC and Swiggy to enhance digital integration and market access for cooperative products, particularly in the dairy and organic sector, and  facilitate capacity building  for  cooperatives  in  areas  such  as  digital  marketing,  logistics,  and  consumer technology. The Scope of the MoU includes the following:

- Swiggy,  in  collaboration  with  the  Ministry  of  Cooperation,  would  engage  in  an awareness campaign for cooperative movement/ organisations/ products in India.
- Encourage  onboarding  of  cooperative  dairy  products  and  support  for  preferred access through Swiggy's Instamart platform for cooperatives.
- Swiggy, in collaboration with the ministry, will support the cooperative brands in the areas of marketing, promotion, consumer technology and capacity building efforts.
- Swiggy will create a separate cooperative category on its platform, with a focus on brands promoted by cooperative organisations for products such as Organics, Dairy, Millets, Handicrafts, etc.
- The initiative will enhance digital access, create sustainable growth opportunities, maximize the impact of cooperatives in the digital economy, and build capacity for cooperatives through mutually agreed-upon projects.
128. Ministry of Cooperation is committed to the redressal of grievances in an effective and timebound  manner.  During  2024-2025  Ministry  of  Cooperation  has  disposed  of  more  than 33,821  grievances  received  through  the  Centralised  Public  Grievance  Redress  and Monitoring System (CPGRAMS) portal, with the lowest average closing time of 2 days.
129. The Ministry has successfully transferred the Cooperative Education Fund (CEF) account from  NCUI  to  the  Ministry  of  Cooperation  following  the  enactment  of  the  Multi-State Cooperative Societies (Amendment) Act, 2023, and instituted a dedicated framework for its management and utilization.
130. Sustainability and Circularity in the Dairy Sector :  An important objective added to White Revolution 2.0 is the promotion of sustainability and circularity in the dairy sector. The strategy to achieve the objective would be to embed sustainability and circularity across the dairy  value  chain  by  promoting  climate-smart  practices,  efficient  resource  use,  and renewable solutions to build a low-emission, income-generating ecosystem. A workshop on sustainability and circularity in the dairy sector was inaugurated by the Hon'ble Home & Cooperation Minister on 03.03.2025. The action for sustainability and circularity in the dairy sector is guided by the vision of 'Gold out of Garbage ( कचरे से क ं चन)'.
131. 122. Under sustainability and circularity in the dairy sector, a multi-state cooperative society, namely Cooperative Inputs and Services Delivery Multi-State Limited, has been registered
- on 31.12.2025. This society aims to enhance the productivity of dairy animals and improve the profitability of dairy farmers by ensuring timely access to affordable, quality inputs and essential support services.
132. 123. Under sustainability and circularity in the dairy sector, another multi-state cooperative society,  namely  Gomay  Sahkari  Samiti  Multi-State  Limited,  has  been  registered  on 31.12.2025.  This  society  aims  to  promote  manure  management  practices  that  generate employment and income opportunities for rural communities, while supporting renewable energy goals and the sustainable use of organic fertilizers.
133. 124. Under the initiative of sustainability and circularity in the dairy sector, a new multistate cooperative society for the management of hides, bones, and horns of fallen cattle and buffaloes is envisaged to be set up.
134. Establishment of Sardar Patel Cooperative Dairy Federation Limited (SPCDF): A new Multi-state  Cooperative Society by the name Sardar Patel Cooperative Dairy Federation Limited (SPCDF) has been launched by the Hon'ble Home & Cooperation Minister on 06.07.2025, with an initial capital of ₹ 200 crore. SPCDF will enable more than 20 lakh dairy farmers from over 20,000 villages in 20 states (Jammu & Kashmir, Himachal Pradesh, Punjab,  Uttarakhand,  Haryana,  Rajasthan,  Uttar  Pradesh,  Bihar,  Assam,  West  Bengal, Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, Maharashtra,  Andhra Pradesh, Karnataka,  Goa,  Tamil  Nadu,  Telangana)  to  become  direct  members  of  an  organized cooperative structure. Through SPCDF, farmers will benefit from assured milk procurement, improved veterinary care, enhanced cattle nutrition, and modern dairy practices. Investments in robust cold chain infrastructure, chilling centers, and efficient processing facilities will further strengthen quality standards and support the rising demand for safe, hygienic dairy products.
135. Cooperative  Milk  Producers'  Organization  Multi-State  Limited  for  MPOs :  A  new Multi-state  Cooperative  Society  by  the  name  Cooperative  Milk  Producers'  Organization Multi-State  Limited  has  been  registered  on  31.12.2025.  The  society  aims  to  integrate existing milk pooling points across 9 states (Andhra Pradesh, Bihar, Gujarat, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, and West Bengal) under cooperative societies as Multi-Purpose Village Cooperative Societies (around 20,000 VCS)
136. Enabling  Participation  of  Cooperative  Federations  in  PESB  Selection  Process  for CPSEs: With the intervention of the Ministry, the applicants from National and State Level Cooperative Federations have now been permitted to apply under the 'Private Category' for Board-level posts in Central Public Sector Enterprises (CPSEs) advertised by PESB, subject to  fulfillment  of  the  prescribed  eligibility  conditions,  as  applicable  giving  them  equal treatment at par with applicants from other business entities.
137. International  Cooperation  for  Promotion  of  Cooperatives :  With  the  approval  of  the Cabinet, a Memorandum of Understanding (MoU) has been signed between the Ministry of Cooperation, Government of the Republic of India, and the Ministry of Small and Medium Enterprise  Development  (MoSMED),  Government  of  the  Republic  of  Zambia. Another MoU has been signed between the Ministry of Cooperation, Government of the Republic of India  and  the  Government  of  Mongolia,  for  promoting  cooperative  principles  and collaboration  among  cooperatives  of  the  respective  countries.  These  arrangements  are intended to foster friendly and mutually beneficial relations and to provide the necessary facilities and mechanisms for developing trade alliances between cooperatives

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