Read or download the official PDF of this gazette notification issued by the Ministry of Law and Justice on 14th August 2026. Classified under Extra Ordinary.
Executive Summary
The National Co-operative Development Corporation (Amendment) Act, 2026, amends the principal Act of 1962 to expand the Corporation’s scope in planning, promoting, and financing co-operative development. Key updates include the authorization of direct loans to co-operative entities, expanded definitions of eligible commodities, and new powers for credit information sharing. The Act will come into force on a date to be specified by the Central Government through notification in the Official Gazette.
Key Points / Main Content
Expanded Definitions and Scope
Co-operative Development: Formally defined as the planning, promoting, and financing of programs for co-operative societies, whether directly or through intermediary entities.
Commodities and Products: The scope of "notified commodities" now includes processed food, edible products, and any other items notified by the Central Government.
Handicrafts: The definition is broadened to include all handicrafts and crafts, removing the restriction to only those in rural areas.
Legal Updates: References are updated to align with the Multi-State Co-operative Societies Act, 2002.
Financial and Operational Provisions
Direct Financing: The Corporation is now authorized to provide loans and grants directly to co-operative societies or entities engaged in co-operative development, subject to security requirements.
State Government Funding: Funds can be provided to State Governments for the purchase of agricultural produce, livestock, and notified services on behalf of the Central Government, provided they are used for co-operative societies.
Share Capital Participation: With Central Government approval, the Corporation may participate in the share capital of co-operative societies or development entities.
Entity Determination: The Board of the Corporation is empowered to determine which entities qualify as being "engaged in co-operative development."
Administrative and Information Powers
Incidental Powers: The Corporation is granted the authority to perform any actions necessary or incidental to the exercise of its powers and duties under the Act.
Credit Information: For efficient functional discharge, the Corporation may collect from or furnish credit information to the Central Government, Reserve Bank of India, banking companies, or notified financial institutions.
Impact Analysis
National Co-operative Development Corporation (NCDC)Impact
The Corporation gains significantly broader operational powers, including the ability to bypass intermediaries for direct lending and the authority to participate in share capital.
Action Required
The Board must determine the criteria for "entities engaged in co-operative development" and establish security standards for direct loans and grants.
State GovernmentsImpact
State Governments receive a clear mandate and funding channel for purchasing agricultural and industrial goods for co-operative societies on behalf of the Union.
Action Required
Ensure that funds received from the Corporation are utilized strictly for the benefit of co-operative societies as prescribed.
Co-operative Societies and Development EntitiesImpact
These entities benefit from expanded eligibility for financial assistance, grants, and capital investment directly from the NCDC.
Action Required
Entities seeking direct loans must be prepared to furnish the security required by the Corporation and meet the Board's eligibility criteria.
Central GovernmentImpact
The Central Government retains oversight through approval requirements for share capital participation and the power to notify new commodities and financial institutions.
Action Required
Appoint the commencement date of the Act via the Official Gazette and notify specific food items or financial institutions as needed.
Key Entities Referenced
National Co-operative Development Corporation (Amendment) Act, 2026: The primary legislation enacted to amend the 1962 Act, expanding the scope of co-operative development and financing powers.
National Co-operative Development Corporation Act, 1962: The principal Act being amended, which governs the functions and powers of the National Co-operative Development Corporation.
National Co-operative Development Corporation: The statutory body empowered by this Act to provide loans, grants, and share capital directly to co-operative societies and other entities.
Multi-State Co-operative Societies Act, 2002: A referenced law governing co-operative societies with objects not confined to one state, used to define the scope of applicable societies.
Reserve Bank of India: The central regulator from which the Corporation is authorized to collect or furnish credit information under the new section 13A.
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Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 14th August, 2026/Sravana 23, 1948 (Saka)
The following Act of Parliament received the assent of the President on the
Bill No. 156-F of 2026
14th August, 2026 and is hereby published for general information:—
THE NATIONAL CO-OPERATIVE DEVELOPMENT
THE NCAOTRIOPONRAALT CIOON-O (PAEMREANTIDVMEE DNETV) EALCOTP, M20E2N6T
CORPORATION (AMENDMENT) BILL, 2026
No. 19 of 2026
(AS PASSED BY THE HOUSES OF PARLIAMENT)
A [14th August, 2026.]
An Act further to amend the BNIaLtLio nal Co-operative Development
furtheCr toor pamoreantdio thne A Ncatt,i o1n9a6l 2C. o-operative Development Corporation Act, 1962.
BE it enacted by Parliament in the Seventy-seventh Year of the Republic of
India as follows:––
1. (1) This Act may be called the National Co-operative Development Short title and
Corporation (Amendment) Act, 2026. commencement.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
26 of 1962. 2. In the National Co-operative Development Corporation Act, 1962 Amendment of
(hereinafter referred to as the principal Act), in section 2,–– section 2.
(a)clause (aba) shall be omitted;2 THE GAZETTE OF IND2I A EXTRAORDINARY [Part II—
(b)after clause (b), the following clause shall be inserted, namely:––
‘(ba) “co-operative development” means planning, promoting and
financing programmes, whether directly or through any intermediary
entity, to co-operative societies;’;
(c)in clause (c), for the words and figures “the Multi-State Co-operative
Societies Act, 1984 or under any other law with respect to co-operative 51 of 1984.
societies for the time being in force in any State”, the words and figures “the
Multi-State Co-operative Societies Act, 2002 or under any other law with 39 of 2002.
respect to co-operative societies for the time being in force” shall
be substituted;
(d)in clause (da), after sub-clause (viii), the following sub-clauses shall
be inserted, namely:––
“(ix) processed food and other edible products;
(x) any other food items as may be notified by the Central
Government;”;
(e) in clause (dba), for the words “in the rural area and includes any
handicrafts or rural crafts”, the words “including any handicrafts or other
crafts” shall be substituted;
(f)after clause (dd), the following clause shall be inserted, namely:––
‘(de) “notification” means a notification published in the Official
Gazette and the expression “notify” or “notified” shall be construed
accordingly;’.
Omission of 3.Section 2A of the principal Act shall be omitted.
section 2A.
4. In section 3 of the principal Act, in sub-section (4), clause (vii) shall
Amendment of
section 3. be omitted.
5.In section 9 of the principal Act,––
Amendment of
section 9.
(a)in sub-section (1),––
(i)for the words “, through co-operative societies”, the words “for
co-operative development” shall be substituted;
(ii)in clause (a), for the words “and notified commodities”, the
words “, notified commodities and industrial goods” shall be
substituted;
(b)in sub-section (2),––
(i) for clause (b), the following clause shall be substituted,
namely:––
“(b) provide funds to State Governments for financing
co-operative societies or any entity engaged in co-operative
development, for the purchase of agricultural produce, foodstuffs,
livestock, poultry feed, industrial goods, notified commodities and
notified services on behalf of the Central Government, to the extent
such funds are used for co-operative societies;”;
(ii)after clause (d), the following clause shall be inserted, namely:––
“(da) provide loans and grants directly to co-operative
societies or any entity engaged in co-operative development to the
extent such funds are used for co-operative societies, subject to
furnishing security, as may be required by the Corporation;”;Sec. 1] THE GAZETTE OF IND3IA EXTRAORDINARY 3
(iii) after clause (f), the following clause shall be inserted,
namely:––
“(g) with the approval of the Central Government, participate
in the share capital of co-operative societies other than a
co-operative society referred to in clause (f), or any entity engaged
in co-operative development.”;
(c) after sub-section (3), the following sub-section shall be inserted,
namely:––
“(4) The entity engaged in co-operative development shall be such
as may be determined by the Board.”.
6.After section 9 of the principal Act, the following section shall be inserted, Insertion of
new section 9A.
namely:––
“9A. The Corporation may do all such things as may be necessary or Incidental
powers.
incidental to or consequential upon the exercise of its powers, discharge of its
functions and the performance of its duties, under this Act, or under any other
law for the time being in force.”.
7. After section 13 of the principal Act, the following section shall be inserted, Insertion of
new section
namely:––
13A.
“13A. The Corporation may, for the purpose of the efficient discharge of Credit
its functions under this Act, collect from or furnish to the Central Government, information.
the Reserve Bank or any banking company or such other financial institution
as may be notified by the Central Government in this behalf, credit
information or other information.”.
————
DR. RAJIV MANI,
The above Bill has been passed by the Houses of Parliament.
Secretary to the Govt. of India.
Dated the Chairman.
————
I assent to this Bill.
Dated the President.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—518GI(S4)—14-08-2026.