MODERNISATION AND DIGITISATION OF INDIA’S URBAN COOPERATIVE BANKS (UCBS)

NEWS

• Union Home and Cooperation Minister Amit Shah launched two digital applications—Sahakar Digi Pay and Sahakar Digi Loan.
• The announcement was made at the “Co-Op Kumbh 2025”, an international conference on the urban cooperative credit sector organised by NAFCUB.
• Aim: Modernisation and digitisation of India’s urban cooperative banks (UCBs).

HIGHLIGHTS

Key Announcements

1. Launch of Two Digital Apps

• Sahakar Digi Pay
  • Enables digital payment services for even the smallest UCBs.
  • Promotes inclusive digital banking among cooperative institutions.
• Sahakar Digi Loan
  • Facilitates faster, digitally enabled loan processing.

1. Expansion of Urban Cooperative Banks

• Government target:
  • One urban cooperative bank in every city with a population of over 2 lakh.
  • Timeline: Within five years.
• Objective: Strengthen cooperative-led financial inclusion in urban areas.

Performance Improvements in UCBs

• NPAs significantly reduced:
  • From 2.8% to 0.6% in the past two years.
• Emphasis on:
  • Better operational standards
  • Enhanced financial discipline
  • Stronger governance mechanisms

 Government Vision for the Cooperative Sector

• The Ministry of Cooperation has introduced several policy reforms to:
  • Modernise cooperative institutions
  • Resolve structural challenges
  • Improve credit access and financial health
  • Expand their socio-economic reach
• Shah emphasised that GDP growth alone is not enough; improving livelihoods through employment and cooperative-based development is essential.