Centre Pushes Tighter Bank Oversight and Digital Markets for Cooperatives

State registrars must step up oversight of cooperative banks, as institutional autonomy cannot exist without strict accountability and credit discipline. Addressing the 9th National Review Workshop in Bastar, Ministry of Cooperation Secretary Ashish Kumar Bhutani warned that governance lapses in regional lenders risk eroding public trust across the entire cooperative sector.

To expand rural earnings, the Centre is consulting states on establishing a unified digital marketing platform backed by the Open Network for Digital Commerce (ONDC). Meanwhile, recent legislative amendments to the National Cooperative Development Corporation (NCDC) Act now allow state-level developmental entities, even if not registered as cooperatives, to access direct financial assistance to incubate local cooperative networks.

Deliberations in Bastar, a district historically impacted by Left Wing Extremism, placed special emphasis on integrating Primary Agricultural Credit Societies (PACS) and tribal collectives into national supply chains. Officials are evaluating the ground-level economics of PACS-led grain procurement—including commission margins and payment delays—while connecting primary producers to national federations like NCEL for exports, NCOL for organic produce, and BBSSL for certified seeds.

The Ministry is also coordinating with the Reserve Bank of India to modernise risk frameworks and enhance concessional credit flow to smallholders. Over the next three months, participating states will roll out targeted action plans focusing on PACS computerisation, the expansion of decentralised grain storage, and cooperative dairy diversification.