Union Cooperation Minister Amit Shah has taken a major step toward modernizing urban cooperative banks (UCBs) by launching two innovative mobile applications — Sahakar Digi Pay and Sahakar Digi Loan. Addressing the growing importance of digital payments in India’s cashless economy, Shah emphasized that UCBs must adopt modern technologies to remain competitive and relevant. The launch coincided with a two-day international conference on the urban cooperative credit sector, where the minister also outlined ambitious targets for the growth and professionalization of the sector.
Digital Transformation of Urban Cooperative Banks
Sahakar Digi Pay and Sahakar Digi Loan
- Sahakar Digi Pay: A digital payment platform enabling seamless transactions for UCB customers.
- Sahakar Digi Loan: A digital lending platform to facilitate easier access to credit for individuals and small businesses.
- Objective: Encourage rapid digital adoption among UCBs to compete in the cashless economy.
- Target: Onboard 1,500 banks within two years to the digital platform.
Growth and Expansion Targets
- National Goal: Establish at least one additional UCB in every town with a population over 2 lakh within five years.
- Strategy: Convert successful cooperative credit societies into UCBs for wider coverage.
- Emphasis: Focus on providing financial support to young entrepreneurs and economically disadvantaged groups.
Sector Reforms and Achievements
- Improved Financial Health: Non-performing assets (NPAs) reduced from 2.8% to 0.6% over the past two years.
Policy Reforms,
- Model bylaws for Primary Agricultural Credit Societies (PACS) adopted nationwide.
- Computerization and expansion of cooperative banking services encouraged.
- Recognition of Cooperatives: Amul and IFFCO ranked as the world’s top two cooperatives by the International Cooperative Alliance.
Challenges and Calls for Action
- Threats to UCBs: Around 20 banks are on the verge of closure.
- Revival Approach: Adopt strategies similar to successful bank rescues (e.g., Yes Bank).
- Ministerial Guidance: The central government, despite cooperation being a state subject, provides policy guidance for uniformity and sector growth.
Key Static Facts
- Launch Date: November 10, 2025
- Minister: Amit Shah, Union Cooperation Minister
- Digital Platforms: Sahakar Digi Pay and Sahakar Digi Loan
- Target Population Coverage: Towns with >2 lakh population
- NPA Reduction: From 2.8% → 0.6%
- Digital Adoption Target: 1,500 UCBs within two years
- Recognition: Amul and IFFCO ranked top global cooperatives