New Delhi: The government is planning to use dairy and fishery cooperative societies as banking cooperatives to help expand banking services in rural areas. These cooperatives will act as “bank mitras” or banking agents, offering services like micro-ATMs and low-interest farm loans, revealed the Secretary of the Ministry of Cooperation, IAS officer Ashish Kumar Bhutani.
A test program has already begun in Gujarat which showed that cooperative members could access banking services locally, including getting small loans delivered to their doorstep, along with other transactions. The government now plans to expand this program across the nations where these cooperatives will work as bank correspondents for district and state cooperative banks.
These cooperatives will get micro-ATMs funded by the National Bank for Agriculture and Rural Development (NABARD). Members will also get Kisan Credit Cards for availing farm loans at lower interest rates.
The Ministry of Cooperation, Bhutani said, has introduced 54 measures in the last two-and-a-half years to support and promote the cooperative sector in India. These measures include allowing local cooperatives to engage in various activities and creating multi-state cooperatives to boost exports, seed production, and organic farming, helping cooperatives reach international markets.
