Cooperative Banks

RBI's revised norms empower cooperative banks with greater autonomy

RBI's final business authorisation norms expand operational autonomy for co-op banks while strengthening oversight, introducing a four-tier framework for the diverse UCB sector

Maharashtra reserves 70% jobs in district cooperative banks for locals

In a move aimed at encouraging local employment, the Maharashtra government has directed that 70 per cent of jobs in District Central Cooperative Banks (DCCBs) be reserved for candidates domiciled in the respective districts. The government has also decided that all future recruitments in DCCBs across the state be conducted only through the Institute of Banking Personnel Selection (IBPS), TCS-iON (Tata Consultancy Services), or Maharashtra Knowledge Corporation Ltd (MKCL) to ensure transparency and fairness in the process. A government resolution (GR) issued on October 31 said "70 per cent of the posts should be reserved for domicile candidates of the respective districts", while the remaining 30 per cent will be open to candidates from outside the district. If suitable out-of-district candidates are not available, those posts may also be filled by local candidates. As per the GR, the directive applies even to the banks that have issued recruitment advertisements before this ...

Cooperative banks get simplified Aadhaar system to expand financial access

Cooperative banks will now be able to offer Aadhaar-enabled payment services under a revised framework unveiled by the Unique Identification Authority of India (UIDAI) that aims to expand digital financial services to rural and semi-urban areas. Addressing a workshop on the new framework in New Delhi on Friday, Cooperation Ministry Secretary Ashish Kumar Bhutani said the initiative will empower cooperative banks to become more capable and self-reliant financial institutions. "This will significantly expand the reach of financial inclusion to rural and semi-urban India, in line with the government's vision of inclusive growth through cooperation," Bhutani said, according to an official statement. The new framework addresses long-standing challenges that kept cooperative banks outside the Aadhaar authentication ecosystem due to compliance and cost issues. UIDAI developed the simplified system in consultation with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks. Under

Reviving cooperatives must address foundational issues, regulatory overlap

From enabling access to credit and inputs to farmers, cooperatives today are expanding into diverse sectors

RBI proposes easing business authorisation norms for urban co-op banks

The RBI on Monday proposed to replace the existing norms for urban cooperative banks (UCBs) with a harmonised eligibility criteria for certain business authorisations, permissions and approvals. The Reserve Bank has proposed that large UCBs (falling in Tier 3 and Tier 4 categories) which are in compliance with eligibility criteria for business authorisation (ECBA) and having a minimum assessed net worth (ANW) of Rs 50 crore may extend their area of operation beyond the state of registration, subject to prior approval of the Reserve Bank. The UCB would be permitted to extend its area of operation to a maximum of two states in a financial year, subject to the availability of adequate headroom capital required for opening at least five branches in each proposed state, said the draft Master Direction Business Authorization for Co-operative Banks (Directions), 2025. A UCB may extend its area of operation to the whole of its district of registration without prior permission from the RBI,

New national policy on cooperatives calls for apex bank for the sector

India has over 800,000 cooperative societies, comprising around 200,000 cooperatives and 600,000 non-credit cooperatives

Bank fraud case: Court orders auction of sports academy, land of ex-MLA

A special anti-money laundering court has ordered the auction of properties linked to former MLA Vivekanand Shankar Patil to facilitate repayment to creditors of a cooperative bank based in Panvel in Maharashtra's Raigad district. The properties, comprising a multi-acre sports academy and a land parcel in Panvel, have been attached by probe agencies in an alleged fraud of over Rs 512 crore at the Karnala Nagari Sahakari (cooperative) Bank. Patil, the prime accused in the case, represented Panvel as a Peasants and Workers Party of India MLA for three terms and was a legislator from Uran once. A total of 87 properties, including some ancestral assets of Patil, were attached under the MPID Act, or the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, by Navi Mumbai police's Economic Offences Wing. The Enforcement Directorate (ED), which is also probing a money laundering case linked to the fraud, has dual attachment to some of these properties. Speci

Uttar Pradesh Cooperative Bank posts net profit of Rs 100 crore in 2025

The Uttar Pradesh Cooperative Bank on Wednesday reported a net profit of Rs 100 crore in 2025, on the back of increased lending activity and improved management practices. The total business stood at Rs 41,234 crore, reflecting its growing role in the rural economy, according to a statement. "The bank's net profit, which stood at Rs 32.82 crore in 2017, has now crossed Rs 100 crore -- registering a threefold increase. "This remarkable growth highlights not only increased lending activity but also the impact of improved management practices and enhanced transparency," it added. In 2017, the Uttar Pradesh Cooperative Bank disbursed loans worth Rs 9,190 crore. By 2025, this figure has surged to Rs 23,061 crore under the Yogi government'?a testament to its effectiveness in economically empowering farmers and small entrepreneurs across the state. The crop loan disbursements have also doubled to Rs 11,516 crore. Additionally, 13 new branches of cooperative banks have been established,

RBI allows minors above 10 years to open bank accounts independently

Minors of any age can open and operate savings and term deposit accounts through their natural or legal guardian

New India Co-operative Bank case: Depositors push for revival or merger

Depositors of scam-hit New India Co-operative Bank met RBI-appointed advisors and senior officials of the apex bank, demanding a concrete roadmap for the bank's revival or merger and better protection for depositors' interests, as per a release. The NICB Depositors' Foundation is demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February 13, 2025. Mumbai Police has so far arrested eight persons in connection with the Rs 122 crore New India Cooperative Bank embezzlement case. The foundation president TN Raghunatha said a delegation of depositors met RBI-appointed advisors Ravindra Chavan and Ravindra Sapra at the bank's corporate office in Prabhadevi on Friday. During the discussion, the advisors offered a cautiously optimistic outlook on the bank's future, Raghunatha stated. "The advisors were positive about the prospects of reviving the bank. They confirmed that mult

RBI cancels licence of Ahmedabad-based Colour Merchants Co-op Bank

The Reserve Bank on Wednesday said it has cancelled the licence of Ahmedabad-based 'Colour Merchants Co-operative Bank' as the lender does not have adequate capital and earning prospects. Registrar of Cooperative Societies, Gujarat, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the Reserve Bank of India (RBI) said in a statement. On liquidation, every depositor would be entitled to receive the deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI further said as per the data submitted by the co-operative bank, about 98.51 per cent of the depositors are entitled to receive full amount of their deposits from DICGC. As of March 31, 2024, DICGC has already paid Rs 13.94 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank. Giving reasons behind cancellation

ED arrests ex-chairman of Karnataka co-op bank in Rs 63-crore fraud case

The Enforcement Directorate on Wednesday arrested a former chairman of a Karnataka-based cooperative bank for alleged financial irregularities of about Rs 63 crore at one of its branches. R M Manjunatha Gowda was taken into custody under the Prevention of Money Laundering Act (PMLA) and produced before a special court in Bengaluru, which sent him to ED custody for 14 days, the federal probe agency said in a statement. The arrest came a day after the ED carried out raids in Bengaluru and Shivamogga districts of Karnataka in the probe against the financial affairs of the Shimoga District Co-Operative Central Bank, City Branch. "Large-scale misappropriation of funds took place at the said branch which was orchestrated primarily by the branch manager, B Shobha, on the instructions of Gowda," the ED alleged. The two and their legal representatives could not be contacted for comment on the ED's charges. According to the chargesheet filed by Lokayukta Police (of Karnataka Police), the E

RBI allows Rs 25,000 withdrawal for New India Cooperative Bank depositors

50 per cent of depositors can withdraw their entire money

RBI supersedes New India Co-op Bank board after imposing biz restrictions

Alleged misappropriation of funds behind curbs

Decoded: Why RBI stopped New India Co-operative Bank's operations

The RBI has barred the New India Co-operative Bank Ltd from issuing loans or permitting withdrawals for six months

Customers panic as RBI bans withdrawals from New India Co-operative Bank

RBI imposed severe restrictions on New India Co-operative Bank, including a ban on withdrawals for six months, due to concerns over the bank's financial stability

RBI imposes curbs on New India Co-operative Bank on supervisory concerns

The bank's advances reduced to 11.75 billion rupees as of March 31, 2024, from 13.30 billion rupees a year earlier. Its deposits rose to 24.36 billion rupees from 24.06 billion rupees

Bank unions' Budget wishlist: Scrap tax on profits of cooperative banks

Asks for refinancing Rs 2 trn for non-recovery of farm loans

Govt launches 10k agri cooperatives, aims for 200k target in 5 yrs: Shah

Cooperation Minister Amit Shah launched 10,000 new multi-purpose Primary Agricultural Cooperative Societies (PACS) on Wednesday and asserted that the government will achieve its target of establishing 2 lakh such societies before the five-year timeline. Addressing the launch event, Shah said prosperity through cooperation cannot be achieved unless cooperatives function effectively at the panchayat level. "We have kept a target of setting up 2 lakh PACS in five years. I want to tell you that we will establish 2 lakh PACS before five years. In three months, we established 10,000 new PACS," the minister said. The initiative will be rolled out in two phases, with NABARD establishing 32,750 new M-PACS in the first phase, while NDDB will set up 56,500 dairy cooperatives and NFDB 6,000 fishery cooperatives. In the second phase, NABARD will create 45,000 M-PACS, NDDB will establish 46,000 dairy cooperatives and NFDB 5,500 fishery cooperatives. State governments will form about 25,000 new .

Strengthening cooperatives: Building capacity to increase opportunities

At this juncture, it is critical to extend support to cooperatives for their long-term survival and sustainability