Bank News – On April 22, 2025, the Ministry of Cooperation announced that India’s cooperative banking sector comprises 33 State Cooperative Banks (StCBs), 13 State Cooperative Agricultural and Rural Development Banks (SCARDBs), 603 Primary Cooperative Agricultural and Rural Development Banks (PCARDBs), and 351 District Central Cooperative Banks (DCCBs) as of April 21, 2025.
India’s Cooperative Banking Network Expands, Strengthens Rural Credit in 2025
These institutions form the backbone of the three-tier cooperative credit structure, serving over 10.5 crore accounts, primarily farmers, as per the Ministry’s X post.
As of 21 April, 2025, there are 33 State Cooperative Banks (StCBs), 13 State Cooperative Agricultural and Rural Development Banks (SCARDBs), 603 Primary Cooperative Agricultural and Rural Development Banks (PCARDBs) and 351 District Central Cooperative Banks (DCCBs) operating in… pic.twitter.com/Paw0FlTcLh
— Ministry of Cooperation, Government of India (@MinOfCooperatn) April 22, 2025
StCBs operate at the state level, DCCBs at the district level, and PCARDBs focus on long-term rural credit for agriculture and infrastructure.
This network, supported by over 88,891 Primary Agricultural Credit Societies (PACS), ensures affordable credit for rural communities, reducing reliance on moneylenders. The Ministry, under Union Minister Amit Shah, emphasized initiatives like CGTMSE inclusion for risk coverage, boosting cooperative banks’ lending capacity.
The announcement aligns with the International Year of Cooperatives 2025 (#IYC2025), promoting #SahkarSeSamriddhi (prosperity through cooperation). Despite challenges like limited capital and technological gaps, these banks are pivotal for financial inclusion, supporting small farmers and rural enterprises.
The Ministry’s focus on strengthening this structure underscores its commitment to rural economic empowerment, with potential for further growth in 2025.
Three-Tier Structure:
- Tier 1 (Apex): 33 State Cooperative Banks (StCBs) operate at the state level, mediating between RBI/NABARD and lower tiers.
- Tier 2 (Intermediate): 351 District Central Cooperative Banks (DCCBs) function at the district level, financing PACS and individuals.
- Tier 3 (Base): Over 88,891 Primary Agricultural Credit Societies (PACS) and 603 Primary Cooperative Agricultural and Rural Development Banks (PCARDBs) serve villages, providing short- and long-term credit.
Long-Term Credit:
13 State Cooperative Agricultural and Rural Development Banks (SCARDBs) and PCARDBs focus on long-term loans for irrigation, land development, and rural infrastructure.
Significance:
With over 10.5 crore accounts, cooperative banks are critical for rural financial inclusion, though their share in agricultural lending has declined from 64% in 1992-93 to 11.3% in 2019-20, highlighting the need for reforms.
Relevance to IYC2025:
The post ties to the International Year of Cooperatives 2025, with hashtags like #IYC2025 and #SahkarSeSamriddhi reflecting the Ministry’s campaign to promote cooperative growth.
Challenges:
Cooperative banks face issues like small capital bases, political interference, and limited technological adoption, but initiatives like CGTMSE inclusion aim to address these.
