Parliament Question: Credit Access Constraints for Cooperative Societies in Uttar Pradesh

GOVERNMENT OF INDIA MINISTRY OF COOPERATION LOK SABHA STARRED QUESTION NO. 458 TO BE ANSWERED ON 24th MARCH, 2026 CREDIT ACCESS CONSTRAINTS FOR COOPERATIVE SOCIETIES IN UTTAR PRADESH *458. MS IQRA CHOUDHARY:

Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:

(a) the total amount of refinance assistance extended through NABARD to Cooperative Banks and Primary Agricultural Credit Societies during the last five years, year and district-wise for Uttar Pradesh;

(b) the number of cooperative societies whose applications for refinance or credit linkage were rejected or kept pending due to collateral, eligibility or compliance requirements under the existing refinance framework, district-wise for Uttar Pradesh;

(c) the assessment undertaken by the Ministry regarding restricted credit flow to small cooperative societies in Uttar Pradesh arising from rigid collateral norms and procedural conditions under the NABARD refinance model;

(d) the gap identified between refinance sanctioned at the apex level and actual credit reaching primary cooperative societies at the grassroots level; and

(e) the policy measures proposed by the Government to simplify refinance conditions and ensure that smaller cooperative institutions are not excluded from institutional credit support? ANSWER THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a) to (e): A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 458 “CREDIT ACCESS CONSTRAINTS FOR COOPERATIVE SOCIETIES IN UTTAR PRADESH” ASKED BY MS IQRA CHOUDHARY, HON’BLE MEMBER OF PARLIAMENT DUE FOR REPLY ON 24th MARCH, 2026

(a) to (c) 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.

(d): 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.

(e): 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.

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