Government to Launch Pilot Project for Cooperative Bank Accounts in 2 Districts

The Indian government has decided to implement a pilot project in two districts to ensure that members of cooperatives open their bank accounts exclusively in cooperative banks. This initiative aims to strengthen the cooperative sector and promote financial inclusion.

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Pilot Project for Cooperative Bank Accounts

Union Home Minister Amit Shah announced the pilot project during the virtual inauguration of the newly constructed building of the Surendranagar District Cooperative Bank in Gujarat. He emphasized the need to establish a system where every cooperative institution maintains its bank account in a cooperative bank.

Strengthening the Cooperative Sector

Highlighting the government's efforts to bolster the cooperative sector, Shah mentioned plans to increase the number of Primary Agricultural Credit Committees (PACS). He noted that the number of PACS had declined to 65,000 due to closures over the years. However, the Modi government aims to set up an additional 2 lakh PACS across the country, adding to the existing 65,000.

Shah also highlighted the progress made in establishing new PACS. He stated that 20,000 new PACS have already been set up, and the government is investing approximately Rs 2,500 crore for their computerization.

Surendranagar District Cooperative Bank

The newly constructed building of the Surendranagar District Cooperative Bank, built at a cost of Rs 10 crore, offers various facilities. It has provisions for over 1,000 lockers, advanced golden lockers, a fully computerized core banking facility, and a conference hall that can accommodate 100 people.

Shah expressed confidence that the bank will effectively serve the cooperative societies in the Surendranagar district. He noted the bank's remarkable growth since its establishment in 1960. The annual profit has reached Rs 7 crore, the share capital has increased from Rs 15 crore to Rs 34 crore, and deposits have grown from Rs 53 crore to Rs 400 crore.

The Surendranagar District Bank has also provided loans to approximately 28,000 farmers, with 19,000 of them being small and marginal farmers.

The government's initiative to promote cooperative banking and strengthen the cooperative sector aligns with its broader goal of financial inclusion and economic empowerment. By ensuring that cooperative members utilize cooperative banks, the government aims to enhance the financial well-being of individuals and communities associated with the cooperative movement.