Gandhinagar, Gujarat, 5 January 2025:Union Minister of Home Affairs and Cooperation, Amit Shah today launched ‘Sahakar Sarathi’, a major digital transformation initiative for rural cooperative banks, at the Earth Summit 2025 in Gandhinagar, Gujarat. Shah described the platform as a significant step toward strengthening the cooperative banking ecosystem.
A joint initiative of by the Ministry of Cooperation and NABARD, Sahakar Sarathi aims to provide rural cooperative banks (RCBs) with an integrated, modern, and secure digital infrastructure. The initiative is designed to help cooperative banks adopt advanced banking technologies and offer services comparable to commercial financial institutions.
A Unified Digital Platform for Cooperative Banks
Sahakar Sarathi will deliver key digital banking services—including internet banking, mobile banking, UPI, AEPS, and cybersecurity frameworks—through a Shared Services Entity (SSE). The SSE has been set up by NABARD, in collaboration with NCDC and RCBs, to standardize and strengthen back-end operations across the cooperative banking sector.
The entity has an authorised capital of ₹1,000 crore, equally contributed by:
- NABARD – ₹333.33 crore
- NCDC – ₹333.33 crore
- RCBs – ₹333.34 crore
Three-Vertical Operational Framework
Sahakar Sarathi will operate across three dedicated verticals:
- Technology – Core Banking Solutions (CBS), UPI, AEPS, IT procurement
- Operations – Loan origination, transaction processing, back-end support
- Support Functions – HR, training, compliance, fraud risk management
This structure is expected to reduce operational costs, improve customer service delivery, and help cooperative banks meet regulatory standards more efficiently.
RBI’s In-Principle Approval
The Reserve Bank of India has already granted in-principle approval to NABARD for setting up Sahakar Sarathi as a Shared Service Entity to strengthen rural cooperative banks. The platform is expected to significantly enhance the competitiveness of RCBs, enabling them to serve rural customers with faster, safer, and more reliable digital services.
