Cooperative Banking Reforms Urgently Require Faster Loan Sanctioning and Timely Project Implementation

Cooperative Banking Reforms Take Centre Stage at National Review Conference

In a bid to fast-track loan sanctioning and effective utilisation of funds, the Union Ministry of Cooperation Secretary Ashish Kumar Bhutani has urged states to take immediate action. Speaking at the two-day 'Sahkar se Samriddhi' National Review Conference in Varanasi, Uttar Pradesh, Bhutani stressed the need for coordinated action and firm timelines to bolster cooperative institutions.

The conference, the seventh in a series of national workshops held since October 2024, brought together senior officials from the Centre, states, and major cooperative institutions to review the implementation of flagship initiatives under the ministry. Discussions on the first day ranged across several critical areas, including the computerisation of Primary Agricultural Credit Societies (PACS) and Agricultural and Rural Development Banks (ARDBs).

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Bhutani acknowledged considerable movement in the last six to nine months with respect to computerisation of PACS, but cautioned that sustaining this progress beyond the scheme period ending March 2027 remains the central challenge. A separate session reviewed the World's Largest Grain Storage Plan in the cooperation sector, covering site selection, storage capacity planning, financing, eNWR-based systems, and strategies to deepen cooperative participation in the storage ecosystem.

The conference also took stock of efforts to revive defunct PACS and diversify them into multi-service centres, offering seed distribution, fertilizer supply, Common Service Centres, Jan Aushadhi Kendras, digital services, and e-wallet facilities. Further discussions centred on credit flow through District Central Cooperative Banks (DCCBs), cyber security, Aadhaar seeding, doorstep banking, and technology adoption.

Bhutani underlined that the time for deliberation has passed, and it is now time to ground these initiatives at the district level with clear, time-bound implementation plans. He called for renewed convergence among stakeholders to bridge performance gaps and ensure targets translate into tangible outcomes on the ground.