Celebrating 60 Years of Cooperative Banking in India
The Diamond Jubilee Celebrations of the National Federation of State Co-operative Banks Limited (NAFSCOB) took place today at Bharat Mandapam in New Delhi. Union Home Minister and Minister of Cooperation, Shri Amit Shah, graced the occasion, highlighting the significant contributions of cooperative banks over the past 60 years. The event also included a national meeting of Rural Cooperative Banks, attended by various dignitaries, including Union Ministers of State for Cooperation, Shri Krishan Pal and Muralidhar Mohol, along with the Secretary of the Ministry of Cooperation.
The Importance of Cooperative Banks
In his address, Shri Amit Shah emphasized the dual purpose of celebrating the diamond jubilee. He stated that it serves to showcase the achievements of the institution over the last six decades and to reflect on past mistakes for future improvement. He pointed out that the three-tiered structure of Primary Agricultural Credit Societies (PACS), district-level banks, and state-level banks has been crucial for the agricultural sector in India. This structure has enabled the seamless disbursement of short-term agricultural loans to approximately 130 million farmers, significantly revitalizing the agricultural landscape.
Shri Shah noted that the cooperative banks have played a vital role beyond just providing loans. They have contributed to various aspects of rural life, including collective farming, water management, and the overall strengthening of village economies. This comprehensive support has been instrumental in enhancing the livelihoods of farmers and promoting sustainable agricultural practices across the country.
Vision for the Future of Cooperatives
Shri Amit Shah articulated a vision for India’s cooperative sector, stating that under Prime Minister Narendra Modi‘s leadership, the country is transitioning from “Sahkar Se Samriddhi” (From Cooperation to Prosperity) to “Samriddhi Se Sampoornata” (From Prosperity to Completeness). He highlighted the Ministry of Cooperation’s objective to ensure that economic development benefits all citizens, particularly farmers, rural communities, Dalits, tribals, and women. This inclusive approach aligns with Mahatma Gandhi’s vision of “Gramin Swaraj” (Rural Self-rule) and “Ramrajya.”
The Minister also addressed the challenges facing the cooperative sector, including unequal treatment and the lack of a cohesive legal framework. He expressed optimism that overcoming these obstacles would lead to a transformative period for cooperatives in the next five years. He believes that India’s cooperative sector has the potential to serve as a model for cooperative movements worldwide.
Strengthening the Cooperative Framework
Shri Amit Shah discussed the historical context of NAFSCOB, which was established in 1964 by Dr. Dhananjayrao Ramchandra Gadgil and Maganbhai Patel. He praised NAFSCOB for its role in guiding district and state-level banks and maintaining accurate data on cooperative banking. This data is essential for formulating effective agricultural loan strategies across the nation.
The Minister stressed the need for technological advancements within PACS to ensure transparency and viability. He urged the cooperative banks to adopt modern practices and engage the youth in cooperative activities. He emphasized that every issue faced by villages should be addressed by PACS, while district and state cooperative banks should tackle regional and state-level challenges, respectively.
The Path Forward for Cooperative Banks
Shri Amit Shah outlined the financial landscape of cooperative banks, noting that District Cooperative Banks hold deposits of ₹4,33,000 crore, while State Cooperative Banks have ₹2,42,000 crore. He called for a concerted effort to increase these deposits through cooperation among cooperatives. By consolidating the accounts of various cooperative bodies, he believes that low-cost deposits could increase by 20%, thereby enhancing profitability and loan capacity.
The Minister also highlighted the success of the White Revolution through Amul, which has achieved a turnover of ₹80,000 crore in just two years. He encouraged all District Cooperative Banks to adopt similar models to boost their confidence and operational strength. Furthermore, he announced that the government is exploring long-term financing options through PACS to foster growth in their business.
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