The initiative aims to expand access to affordable credit through the cooperative model.
At the Co-Op Kumbh 2025 in New Delhi, Union Home Minister and Minister of Cooperation Amit Shah announced the government’s target to establish an Urban Cooperative Bank (UCB) in every city with a population exceeding two lakh within the next five years. The initiative, part of the ‘Delhi Declaration 2025’, aims to expand access to affordable credit and strengthen local entrepreneurship through the cooperative model.
The move marks a strategic decentralization of banking services, ensuring that small traders, youth, and self-help groups have access to institutional finance beyond traditional banking networks.
With NPAs already reduced from 2.8% to 0.6%, the Ministry’s focus on modernization and governance reforms underscores a shift toward efficiency-driven cooperatives as catalysts for inclusive economic growth.
Read next: Digital Leap for Cooperatives: ‘Sahkar Digi-Pay’ & ‘Sahkar Digi-Loan’ Apps launched
