(MENAFN- AsiaNet News)

Major Success in Cooperative Banking

Union Home and Cooperation Minister Amit Shah on Monday said that India has achieved remarkable success in strengthening its cooperative banking sector, with Non-Performing Assets (NPAs) reduced from 2.8 per cent to just 0.06 per cent over the past two years. Speaking at the international conference on the urban cooperative credit sector, 'Co-Op Kumbh 2025' in New Delhi as the Chief Guest, Shah said the focus must now shift to improving operational standards and consolidating the gains made in financial discipline.

"Along with this, we must improve operational standards and further strengthen the improvements achieved in financial discipline," Shah said. Highlighting the government's vision to expand the reach of cooperative banks, Shah emphasised that establishing one urban cooperative bank in every city would be possible only by converting existing cooperative societies into banks.

Cooperatives Key to National Progress

He further underscored that the country's progress cannot be gauged solely through Gross Domestic Product (GDP) figures. "GDP alone cannot reflect our progress. We must ensure that every person gets some work and their standard of living improves--and that cannot happen without cooperatives," said the Minister.

Reiterating the Centre's commitment to strengthening the cooperative movement, Shah said both the central and state governments fully understand the importance of cooperatives. "Now, there is a need to work with renewed confidence and effort in a transparent and result-oriented manner," he pointed out.

Co-Op Kumbh 2025: A Roadmap for Expansion

Shah further said the Cooperative Kumbh of urban cooperative banks and credit societies is being organised to mark the International Year of Cooperatives. "Over the past three-four years, the country's urban cooperative banking sector and cooperative credit society sector have been moving forward with renewed enthusiasm. During Co-Op Kumbh 2025, there will be discussions on policy, technology, and innovation to tap several possibilities related to this sector. The 'Delhi Declaration 2025' of the international conference organised by NAFCUB will serve as a roadmap for the expansion of Urban Cooperative Banks," said the Minister.

Digital Initiatives Launched

Through Co-Op Kumbh 2025, he later said the government's dream of expanding urban cooperative banks will be fulfilled very soon. Today, Shah mentioned, Sahkar Digi-Pay and Sahkar Digi-Loan have been launched here by the umbrella organisation. "Through the Sahkar Digi-Pay app, even the smallest urban cooperative banks will be able to offer digital payment facilities."

Government's Strategic Goals for Cooperatives

The Minister also said that since the establishment of the Ministry of Cooperation, several important policy decisions have been taken to bring about fundamental changes in every sector related to cooperatives. "Along with this, many steps have also been taken to modernise the cooperative sector, resolve its challenges, and expand the reach of cooperatives. All state governments in the country have accepted the model bylaws for PACS," said Shah, adding, "the Ministry of Cooperation has set four goals."

Future Targets and Expansion Plans

The Minister said another goal is to prepare cooperative societies that are capable of facing all kinds of challenges. He added that the government has also set a target of establishing one urban cooperative bank in every city with a population of more than two lakh within five years.

Empowering Weaker Sections

Shah later stressed that "urban cooperative banks must carry out their core functions with a multi-sector approach for the empowerment of young entrepreneurs, self-help groups, and weaker sections of society.

"Our goal is to strengthen cooperatives and, at the same time, to strengthen the weaker sections, and no institution other than urban cooperative banks can achieve this. Empowering vulnerable individuals through urban cooperative banks must also be one of our goals," added the Minister. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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