One Bank, One District: India’s Cooperative Banking Revolution

The Indian government is driving a major transformation in the cooperative banking sector by moving towards a model of “one cooperative bank per district.” This ambitious initiative, announced by Uttar Pradesh Chief Minister Yogi Adityanath, aims to consolidate and strengthen district-level cooperative banks, ensuring financial inclusion and revitalizing rural economies across the country.

Key Highlights:

• Revival of Cooperative Sector  
  After years of decline and mismanagement, district cooperative banks are being revived. In Uttar Pradesh, 16 defaulting banks have been restored, with over Rs 4,700 crore returned to farmers, and all are now functioning effectively.
   
• Consolidation and Modernization  
  The government is merging smaller, weaker banks into larger, more robust entities. Recent RBI approvals for bank amalgamations have further strengthened the sector’s balance sheets and improved governance.
   
• Digital Transformation  
  New digital platforms such as Sahkar Digi-Pay and Sahkar Digi-Loan are being rolled out, allowing even small cooperative banks to offer modern banking services and reach remote areas.
   
• Empowering Farmers and Youth  
  Efforts are underway to ensure proper manpower allocation in cooperative societies dealing with fertilizers, chemicals, and pesticides. Initiatives are also being launched to engage youth and promote self-reliance in rural communities.
   
• Financial Discipline and Transparency  
  The sector’s non-performing assets (NPAs) have been reduced significantly, and transparent policies are being implemented to restore public trust and ensure accountability.