The Ministry of Cooperation has held a senior-level review meeting to discuss ways to strengthen concessional financial support to NABARD and NCDC, with the broader objective of enhancing the lending capacity of co-operative banks and credit institutions across the country.
The meeting, chaired by Cooperation Secretary Dr. Ashish Kumar Bhutani in New Delhi, focused on regulatory, structural and operational aspects impacting Urban Co-operative Banks (UCBs), co-operative credit flow and institutional funding mechanisms. Key discussions also included the licensing framework for UCBs, governance improvements and initiatives aimed at modernising the co-operative banking ecosystem.
An increase in concessional support to NABARD and NCDC is expected to improve refinancing capabilities within the sector, enabling better credit access for Primary Agricultural Credit Societies (PACS), urban co-operative credit bodies, dairy cooperatives and other grassroots institutions.
The deliberations are seen as part of a broader policy effort to strengthen liquidity conditions, enhance rural and semi-urban credit delivery and expand financial inclusion through the co-operative banking network.
Officials noted that improving institutional financing channels remains essential for ensuring that co-operative banks are able to meet rising credit demand while maintaining operational stability and compliance standards.
The meeting was attended by senior officials including Sanjay Lohiya, Special Secretary, Department of Financial Services (DFS); Pankaj Kumar Bansal, Additional Secretary, Ministry of Cooperation; Dr. Debashish Prusty, Additional Secretary, DFS; Anand Kumar Jha, Joint Secretary & Central Registrar of Co-operative Societies (CRCS); Raman Kumar, Joint Secretary, Ministry of Cooperation; Ms. Shwetha Rao B., Director, DFS; Kumar Ram Krishna, Director, Ministry of Cooperation, along with other senior officials.
The discussions come amid a series of ongoing policy consultations focused on strengthening the co-operative credit framework. Recent engagements have also addressed taxation and compliance-related concerns raised by co-operative credit societies and banks.
These concerns have highlighted operational pressures faced by smaller institutions, particularly in rural and semi-urban areas where administrative capacity and digital readiness remain uneven.
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