Parliament Question: Governance of cooperative institutions in Odisha

GOVERNMENT OF INDIA MINISTRY OF COOPERATION RAJYA SABHA UNSTARRED QUESTION NO. 2891 ANSWERED ON 18.03.2026 Governance of cooperative institutions in Odisha 2891. Shri Subhasish Khuntia: Will the Minister of Cooperation be pleased to state: (a) whether Government has reviewed the financial position of cooperative banks and cooperative societies in Odisha, including the number of entities operating and those placed under liquidation and if so, the details thereof; (b) whether any assessment has been made of NPA levels, financial irregularities and losses suffered by members in such institutions and, if so, the details thereof; and (c) whether the Ministry proposes any measure for recapitalisation, governance reforms, fraud prevention or revival of viable cooperatives in the State and, if so, the details thereof? ANSWER THE MINISTER OF COOPERATION (SHRI AMIT SHAH) (a) As per information received from RBI and NABARD, the present status of cooperative institutions in Odisha is 9 Urban Cooperative Banks (UCBs), 18 Rural Cooperative Banks (1 State Cooperative Bank and 17 District Central Cooperative Banks), and 4,287 Primary Agricultural Credit Societies (PACS). The financial position of Cooperative Banks is reviewed regularly by State Government, RBI and NABARD. NABARD conducts statutory inspections of Odisha State Cooperative Bank (OSCB) and DCCBs. None of the Cooperative Banks in the State are under liquidation. About 725 cooperative societies are under liquidation with dues of ₹11.08 crore to banks, and their annual audit is conducted by the Directorate of Cooperative Audit, Odisha. (b) Assessment of NPA levels and financial irregularities is undertaken during statutory inspections of the Odisha State Cooperative Bank (OSCB) and all District Central Cooperative Banks (DCCBs) and their performance is also reviewed periodically in High Level Committee meetings. The Gross NPA ratio of OSCB declined from 1.08% as on 31.03.2024 to 0.87% as on 31.03.2025, while the cumulative Gross NPA of all 17 DCCBs declined from 7.33% to 7.18% during the same period. As on 31.03.2025, 7 DCCBs have Gross NPAs up to 5%, 8 DCCBs have Gross NPAs between 5% and 10%, and 2 DCCBs have Gross NPAs between 10% and 15%.(c) The Government of India and RBI have taken several measures to strengthen cooperative banks and improve governance and financial stability across the country including the State of Odisha. These include allowing cooperative banks to open new branches, provide doorstep banking services, and easing regulatory norms to expand lending operations. Measures such as enhancement of loan limits, one-time settlement of loans, inclusion under the Integrated Ombudsman Scheme, onboarding on AePS, and recognition as Member Lending Institutions under CGTMSE have also been introduced. Further, initiatives such as NUCFDC as an Umbrella Organization, Sahakar Sarathi for technological support, and onboarding of cooperative banks on I4C and NCRP portals aim to improve governance, prevent fraud and strengthen the cooperative banking system. Further, the Government of Odisha has been providing support for recapitalisation of Cooperative Banks by contributing to the share capital of all District Central Cooperative Banks (DCCBs) in the State. The share capital assistance released to DCCBs during the last three years is as under: Year Assistance 2022-23 ₹ 102.00 crore 2023-24 ₹ 73.00 crore 2024-25 ₹ 28.02 crore ******