Lok Sabha Question No. 458 (STARRED), answered on 2026-03-24
Subject: Credit Access Constraints for Cooperative Societies in Uttar Pradesh
Ministry: COOPERATION
Asked by: Ms Iqra Choudhary

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA STARRED QUESTION NO. 458 TO BE ANSWERED ON 24 th  MARCH, 2026

## CREDIT ACCESS CONSTRAINTS FOR COOPERATIVE SOCIETIES IN UTTAR PRADESH

## *458. MS IQRA CHOUDHARY:

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

- (a) the total amount of refinance assistance extended through NABARD to Cooperative Banks and Primary Agricultural Credit Societies during the last five years, year and district-wise for Uttar Pradesh;
- (b) the number of cooperative societies whose applications for refinance or credit linkage were rejected or kept pending due to collateral, eligibility or compliance requirements under the existing refinance framework, district-wise for Uttar Pradesh;
- (c) the  assessment undertaken by the Ministry regarding restricted credit flow to small cooperative  societies  in  Uttar  Pradesh  arising  from  rigid  collateral  norms  and procedural conditions under the NABARD refinance model;
- (d) the  gap  identified  between  refinance  sanctioned  at  the  apex  level  and  actual  credit reaching primary cooperative societies at the grassroots level; and
- (e) the policy measures proposed by the Government to simplify refinance conditions and ensure that smaller cooperative institutions are not excluded from institutional credit support?

## ANSWER

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

- ( a ) to (e):      A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 458 'CREDIT ACCESS CONSTRAINTS FOR COOPERATIVE  SOCIETIES  IN  UTTAR  PRADESH'  ASKED  BY  MS  IQRA CHOUDHARY, HON'BLE MEMBER OF PARLIAMENT DUE FOR REPLY ON 24 th MARCH, 2026

(a) to (c) NABARD releases refinance to State Cooperative Banks (StCBs) against the loans  disbursed  by  eligible  District  Central  Cooperative  Banks  (DCCBs)  to  Primary Agriculture Credit Societies (PACS)/Member farmers .

NABARD does not release refinance directly to cooperative societies including PACS. The refinance is provided on demand basis to the State Cooperative Bank.

Further, the refinance assistance extended through NABARD to cooperative banks for the last five years in Uttar Pradesh is given below:

(Rs. crore)

| Financial Year                 | 2020-21   | 2021-22   | 2022-23   | 2023-24   | 2024-25   |
|--------------------------------|-----------|-----------|-----------|-----------|-----------|
| Agency                         |           |           |           |           |           |
| Cooperative banks (Short Term) | 2,414.60  | 3,550.00  | 2,980.00  | 3,796.43  | 2,300.00  |
| Cooperative banks (Long Term)  | 109.20    | 214.36    | 694.40    | 729.01    | 544.46    |

Refinance from NABARD is provided in accordance with the extant guidelines and eligibility criteria. Cooperative societies are members (regular/ordinary or nominal) of District Central Cooperative Banks (DCCBs) and are linked to them for credit purposes. Accordingly, their loan/credit proposals are considered by the concerned Cooperative Banks in accordance with the prescribed norms, procedures and eligibility conditions.

Further, the norms and eligibility criteria/securities for release of refinance to StCBs are liberal in order to ensure adequate and timely credit to PACS and members farmers. The refinance is extended  under  various  schemes  and  for  various  purposes  under  Agriculture  and  Rural development activities in a hassle-free manner. Hence, the question regarding rigid collateral norms and procedural conditions under refinance model and rejections due to it does not arise.

(d): Refinance is provided by NABARD to StCB, which are responsible for on-lending to DCCBs and further to primary cooperative societies. As regards the State of Uttar Pradesh, no such gap has been reported in refinance.

(e): The Government has undertaken various measures to strengthen the cooperative credit structure and improve access to credit, including the computerisation of Primary Agricultural Credit Societies (PACS) and Agricultural and Rural Development Banks (ARDBs), with a view to enabling their integration with higher financing institutions.

To upgrade the technological infrastructure of Cooperative Banks, reduce loan processing time and enhance service delivery, Sahakar Sarathi Private Limited (SSPL) for Rural Cooperative Banks and the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC) for  Urban  Cooperative  Banks  have  been  established  with  the  approval  of  the Reserve Bank of India (RBI). SSPL has introduced various digital initiatives, including Digi KCC, e-KCC and Sahakar Setu, aimed at facilitating and streamlining rural institutional credit delivery.

Further, refinance support from NABARD to State Cooperative Banks (StCBs) is extended under  various  funds  and  schemes.  Short-term  refinance  is  provided  under  the  Short-term Cooperative Rural Credit (STCRC) Fund, while additional support for enhancing credit flow to  the  agriculture  sector  is  provided  through Additional  Seasonal Agricultural  Operations (ASAO).

Concessional refinance for long-term loans in the agriculture sector is supported under the Long-term  Rural  Credit  Fund  (LTRCF). Additional  support,  as  required,  is  also  extended through  other  long-term  refinance  products.  Refinance  is  provided  based  on  demand  and subject to applicable norms.

*****