**Executive Summary**
This report details the credit access and refinance mechanisms for cooperative societies in Uttar Pradesh as of March 24, 2026. It highlights NABARD’s role in providing demand-based refinance to State Cooperative Banks (StCBs) and outlines government initiatives to modernize credit infrastructure. No gaps in refinance have been reported in the state, and credit is extended under liberalized norms to ensure timely delivery to farmers.
**Key Points / Main Content**
**Refinance Mechanism and Data**
* **Funding Flow:** NABARD releases refinance to StCBs, which on-lend to District Central Cooperative Banks (DCCBs), who then provide credit to Primary Agriculture Credit Societies (PACS) and member farmers.
* **Direct Funding Policy:** NABARD does not provide refinance directly to cooperative societies or PACS; funds are issued only to StCBs on a demand basis.
* **Financial Trends (Uttar Pradesh):** Between FY 2020-21 and 2024-25, short-term refinance peaked at Rs. 3,796.43 crore (2023-24), while long-term refinance reached a high of Rs. 729.01 crore in the same period.
**Infrastructure and Digital Transformation**
* **Modernization:** The government is computerizing PACS and Agricultural and Rural Development Banks (ARDBs) to integrate them with higher financing institutions.
* **Technological Bodies:** Sahakar Sarathi Private Limited (SSPL) has been established for rural cooperative banks, and the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC) for urban cooperative banks.
* **Digital Initiatives:** SSPL has introduced "Digi KCC," "e-KCC," and "Sahakar Setu" to reduce loan processing times and streamline rural credit delivery.
**Funding Schemes and Eligibility**
* **Short-Term Support:** Provided via the Short-term Cooperative Rural Credit (STCRC) Fund and Additional Seasonal Agricultural Operations (ASAO).
* **Long-Term Support:** Managed through the Long-term Rural Credit Fund (LTRCF) and other concessional products.
* **Eligibility Norms:** Refinance norms and collateral requirements have been liberalized to prevent rejections and ensure a hassle-free credit flow for agriculture and rural development.
**Impact Analysis**
**NABARD**
**Impact**
Responsible for managing and releasing refinance under liberalized guidelines based on state demand.
**Action Required**
Continue monitoring credit flow and providing refinance to StCBs in accordance with extant eligibility criteria.
**State Cooperative Banks (StCBs) and DCCBs**
**Impact**
Act as the primary intermediaries responsible for on-lending and evaluating credit proposals from cooperative societies.
**Action Required**
Administer loan proposals following prescribed norms and utilize digital tools like Sahakar Setu to enhance service delivery.
**Primary Agriculture Credit Societies (PACS) and Member Farmers**
**Impact**
Beneficiaries of improved credit access, liberalized collateral norms, and modernized digital processing.
**Action Required**
Engage with the computerization process and utilize digital KCC platforms for more efficient credit access.
**Sahakar Sarathi Private Limited (SSPL) and NUCFDC**
**Impact**
Tasked with upgrading the technological infrastructure of the cooperative banking sector.
**Action Required**
Implement and maintain digital initiatives (Digi KCC, e-KCC) to reduce processing times and improve service delivery.
Key Entities Referenced
NABARD: The apex financial institution providing refinance to State Cooperative Banks to facilitate credit flow to farmers and cooperative societies.
Ministry of Cooperation: The central authority responsible for policy measures to strengthen the cooperative credit structure and improve technological infrastructure.
Uttar Pradesh: The specific state where the credit access constraints and NABARD refinance assistance are evaluated and reported.
Primary Agriculture Credit Societies (PACS): Grassroots cooperative entities being computerized to streamline credit access and integrate with higher financing institutions.
Short-term Cooperative Rural Credit (STCRC) Fund: A specific financial mechanism used to provide short-term refinance support for agricultural operations through cooperative banks.
Ministry of Cooperation
Credit access constraints for Cooperative
Societies in Uttar Pradesh
Posted On: 24 MAR 2026 5:24PM by PIB Delhi
NABARD releases refinance to State Cooperative Banks (StCBs) against the loans disbursed by eligible
District Central Cooperative Banks (DCCBs) to Primary Agriculture Credit Societies (PACS)/Member
farmers.
NABARD does not release refinance directly to cooperative societies including PACS. The refinance is
provided on demand basis to the State Cooperative Bank.
Further, the refinance assistance extended through NABARD to cooperative banks for the last five years
in Uttar Pradesh is given below:
(Rs. crore)
Financial Year 2020-21 2021-22 2022-23 2023-24 2024-25
Agency
Cooperative banks 2,414.60 3,550.00 2,980.00 3,796.43 2,300.00
(Short Term)
Cooperative banks 109.20 214.36 694.40 729.01 544.46
(Long Term)
Refinance from NABARD is provided in accordance with the extant guidelines and eligibility criteria.
Cooperative societies are members (regular/ordinary or nominal) of District Central Cooperative Banks
(DCCBs) and are linked to them for credit purposes. Accordingly, their loan/credit proposals are
considered by the concerned Cooperative Banks in accordance with the prescribed norms, procedures and
eligibility conditions.
Further, the norms and eligibility criteria/securities for release of refinance to StCBs are liberal in order to
ensure adequate and timely credit to PACS and members farmers. The refinance is extended under various
schemes and for various purposes under Agriculture and Rural development activities in a hassle-free
manner. Hence, the question regarding rigid collateral norms and procedural conditions under refinance
model and rejections due to it does not arise.
Refinance is provided by NABARD to StCB, which are responsible for on-lending to DCCBs and further
to primary cooperative societies. As regards the State of Uttar Pradesh, no such gap has been reported in
refinance.The Government has undertaken various measures to strengthen the cooperative credit structure and
improve access to credit, including the computerisation of Primary Agricultural Credit Societies (PACS)
and Agricultural and Rural Development Banks (ARDBs), with a view to enabling their integration with
higher financing institutions.
To upgrade the technological infrastructure of Cooperative Banks, reduce loan processing time and
enhance service delivery, Sahakar Sarathi Private Limited (SSPL) for Rural Cooperative Banks and the
National Urban Cooperative Finance and Development Corporation Limited (NUCFDC) for Urban
Cooperative Banks have been established with the approval of the Reserve Bank of India (RBI). SSPL has
introduced various digital initiatives, including Digi KCC, e-KCC and Sahakar Setu, aimed at facilitating
and streamlining rural institutional credit delivery.
Further, refinance support from NABARD to State Cooperative Banks (StCBs) is extended under various
funds and schemes. Short-term refinance is provided under the Short-term Cooperative Rural Credit
(STCRC) Fund, while additional support for enhancing credit flow to the agriculture sector is provided
through Additional Seasonal Agricultural Operations (ASAO).
Concessional refinance for long-term loans in the agriculture sector is supported under the Long-term
Rural Credit Fund (LTRCF). Additional support, as required, is also extended through other long-term
refinance products. Refinance is provided based on demand and subject to applicable norms.
This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written
reply in Lok Sabha.
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AK/AP
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