**Executive Summary**
This document provides details in response to Lok Sabha Unstarred Question No. 2302, answered on December 15, 2025, regarding cooperative banks operating in Telangana. It details the number of banks, financial assistance, instances of fraud, and measures taken to strengthen the cooperative banking system. Key entities involved are RBI, NABARD, and the Ministry of Cooperation.
**Key Points / Main Content**
* **Cooperative Banks in Telangana (as of March 31, 2025):**
* Rural Cooperative Banks: 445 branches, ₹165,644 crore in deposits, ₹34,426 crore in advances. (Includes 9 District Central Cooperative Banks and 1 State Cooperative Bank)
* Urban Cooperative Banks: 355 branches, ₹10,198 crore in deposits, ₹6,805 crore in advances. (Includes 48 Urban Cooperative Banks)
* **Financial Assistance:**
* The National Cooperative Development Corporation (NCDC) has released ₹2,000 crore in financial assistance to the Telangana State Cooperative Bank.
* **Instances of Fraud:**
* NABARD reported 3 instances of fraud in Rural Cooperative Banks (RCBs) in Telangana during FY 2024-25, for which NABARD has taken supervisory actions.
* **Measures to Strengthen the Cooperative Banking System (by RBI & NABARD):**
* The Ministry of Cooperation (MoC) launched Sahakar Sarathi Private Limited through NABARD to provide shared digital infrastructure to RCBs.
* NABARD provides grant assistance to RCBs to set up Business Development and Product Innovations cells (BDPIC) and Primary Agriculture Cooperative Society (PACS) Development Cell (PDC).
* A High-Level Committee (HLC) monitors the financial health of all RCBs on a quarterly basis.
* RCBs with Gross Non-Performing Assets (GNPA) exceeding 10% must submit a Time Bound Action Plan (TBAP) monitored by RBI and NABARD.
* Urban Cooperative Banks (UCBs) are required to constitute a Board of Management (BoM).
* UCBs must have a transparent mechanism for handling Whistle Blower complaints.
* RBI has issued guidelines for Risk Based Internal Audit (RBIA) in UCBs.
* The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits up to ₹5,00,000 per depositor in insured banks.
**Impact Analysis**
**Rural Cooperative Banks (RCBs) in Telangana:**
* **Impact:**
* Benefit from improved digital infrastructure.
* Potential for establishing BDPIC and PACS Development Cells with NABARD assistance.
* Subject to increased monitoring and reporting requirements if GNPA exceeds 10%.
* **Action Required:**
* RCBs with GNPA > 10% need to submit a Time Bound Action Plan (TBAP).
**Urban Cooperative Banks (UCBs) in Telangana:**
* **Impact:**
* (other than those having deposit size less than Rs.100 crore and salary earners' banks) need to constitute a Board of Management (BoM).
* UCBs must implement a transparent mechanism for whistleblower complaints and comply with RBI guidelines for Risk Based Internal Audit (RBIA).
* **Action Required:**
* Implement transparent whistle blower policy.
* Comply with RBI Risk Based Internal Audit (RBIA) guidelines.
Key Entities Referenced
Telangana: Indian state where cooperative banks are being assessed.
National Bank for Agriculture and Rural Development (NABARD): Regulator and facilitator of rural and agricultural development in India, involved in cooperative bank supervision and development.
Reserve Bank of India (RBI): Central bank of India, responsible for regulating and supervising the banking sector including cooperative banks.
Ministry of Finance: Indian government ministry responsible for the financial affairs of the country, including cooperative banks.
Cooperative Banks: The central subject of the document, referring to cooperative sector banks operating in Telangana.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 2302
ANSWERED ON MONDAY, 15 DECEMBER, 2025/ 24 AGRAHAYANA, 1947 (SAKA)
Cooperative Banks in Telangana
2302. SHRI MADHAVANENI RAGHUNANDAN RAO:
Will the Minister of FINANCE be pleased to state:
(a) the details of cooperative sector banks operating in Telangana, including their branches,
deposits and advances;
(b) the amount of funds allocated by the Central Government to these cooperative banks and
the manner in which it has been utilized;
(c) the instances of corruption and irregularities reported in these banks across various districts
and the action taken against those responsible;
(d) the measures being taken by the Government to strengthen the cooperative banking system
in Telangana and improve its overall performance; and
(e) the plan to address issues related to Non-Performing Assets (NPAs) and ensure the financial
health of these cooperative banks?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (b): As informed by Reserve Bank of India (RBI) and National Bank for Agriculture and
Rural Development (NABARD), the details of cooperative banks operating in Telangana,
including their branches, deposits and advances as on 31.03.2025, are given at Annexure I.
Till date, the National Cooperative Development Corporation (NCDC) has released financial
assistance of ₹ 2000 crore to the Telangana State Cooperative Bank.
(c) to (e): As informed by NABARD, during FY 2024-25, 03 instances of fraud have been
reported in various Rural Cooperative Banks (RCBs) in Telangana on which NABARD has
taken appropriate supervisory actions as per the prescribed guidelines.
In order to strengthen the cooperative banking system in Telangana and ensure the health of
cooperative banks, RBI & NABARD have taken various measures which inter-alia include:
• Sahakar Sarathi Private limited has been launched by Ministry of Cooperation (MoC),
Government of India through NABARD to provide shared digital infrastructure to
RCBs to provide better digital facilities at affordable cost.• Grant assistance is also provided by NABARD to RCBs to set up Business
Development and Product Innovations cells (BDPIC) and Primary Agriculture
Cooperative Society (PACS) Development Cell (PDC)
• High Level committee (HLC) chaired by Secretary, Cooperation, Govt. of Telangana
monitors the financial health of all RCBs on a quarterly basis.
• The RCBs which have Gross Non-performing Assets (GNPA) more than 10% have to
submit a Time Bound Action Plan (TBAP) on quarterly basis which is jointly monitored
by RBI and NABARD.
• Urban Cooperative Banks (UCBs) (other than those having deposit size less than
Rs.100 crore and salary earners’ banks) are required to constitute a Board of
Management (BoM) to facilitate professional management and focused attention to
their banking-related activities.
• UCBs shall put in place a transparent mechanism to ensure that Whistle Blower
complaints on possible fraud cases / suspicious activities in account(s) are examined
and concluded appropriately under their Whistle Blower Policy.
• RBI has issued guidelines for Risk Based Internal Audit (RBIA) system in UCBs. The
Deposit Insurance and Credit Guarantee Corporation (DICGC) insures all types of
deposits (inclusive of principal & interest) up to ₹5,00,000 per depositor in insured
banks, including cooperative banks.
*****Annexure I
Statement referred to in part (a) to (b) of Lok Sabha Sabha Un-Starred Question No.
2302 on “Cooperative Banks in Telangana” due for answer on 15.12.2025
Details of cooperative banks in Telangana
Deposit (amount Advances (amount
Type of Bank No. of Branches
in ₹ crore) in ₹ crore)
Rural Cooperative
445 165644 34426
Banks*
Urban Cooperative 6805
355 10198
Banks**
*Includes 9 District Central Cooperative Banks and 01 State Cooperative Banks
**48 Urban Cooperative Banks