RBI comes up with measures to strengthen cooperative banks' financial health

The Reserve Bank of India (RBI), in consultation with the Government of India, has announced that loans sanctioned by banks to National Cooperative Development Corporation (NCDC) w.e.f. January 19, 2026, for on-lending to cooperative societies are eligible for classification as priority sector lending under the respective categories. These apply to banks other than Regional Rural Banks, Urban Cooperative Banks, Small Finance Banks and Local Area Banks. These loans are for purposes and activities as laid down in the Master Direction on Priority Sector Lending, 2025. The Government of India and RBI have taken various measures to strengthen cooperative banks financial health, governance and digital inclusion along with enhancing deposit security, credit availability and prudent regulation.

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