Amit Shah Unveils Plan For Urban Cooperative Banks In Every City With Over Two Lakh Residents

Union Home and Cooperation Minister Amit Shah announced on Monday that every Indian city with a population exceeding two lakh will soon have an urban cooperative bank.

The declaration came during the inauguration of Cooperative Kumbh 2025 (CoopKumbh 2025), an international conference focused on strengthening India’s Urban Cooperative Credit Sector.

Shah said that urban cooperative banks must play a greater role in empowering the country’s youth, small traders, and working-class citizens.

“The goal of establishing cooperative banks in every city has also been set here, which will further accelerate self-reliance and inclusive development in the cooperative sector,” he noted in a post shared on X.

He urged cooperative institutions to assist local entrepreneurs and promote self-employment, emphasising that these banks are instrumental in building a resilient grassroots financial system.

Guidelines and Training for the Sector

The Home Minister called on the National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) to issue a moral guideline to help banks redesign their financial models. He added that the government established Tribhuvan Cooperative University to engage young professionals in the cooperative movement and provide them with specialised education and training in cooperative management.

“This university will nurture a generation that will elevate India’s cooperative sector to new heights by 2047,” Shah said.

The minister also lauded major cooperative institutions like Amul and IFFCO for their transformative contributions.

He highlighted that Amul collects 30 million litres of milk daily, while IFFCO produces over 9.3 million tonnes of fertilisers annually, exporting nano DAP and urea to more than 40 countries.

The two-day event, themed ‘Digitising Dreams – Empowering Communities’, aims to accelerate financial inclusion and technological innovation within cooperative banking. Organised by NAFCUB under the Ministry of Cooperation, the conference has brought together policymakers, regulators, financial institutions, and innovators from India and abroad.

NAFCUB President Laxmi Dass stated that CoopKumbh 2025 will deliberate on governance reforms, digital transformation, and leadership roles for women and youth.

International experts from the World Council of Credit Unions and GreenStone Farm Credit Services are also participating, sharing global best practices to strengthen India’s cooperative finance ecosystem.

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