In a significant move to enhance financial inclusion in underserved regions, the Union Territories of Ladakh and Lakshadweep will soon witness the establishment of their first State Cooperative Banks (StCBs). This development was announced during a two-day National-level Review Meeting held in Shillong, Meghalaya.
Currently, these Union Territories lack both Regional Cooperative Banks (RCBs) and apex cooperative banking institutions. The establishment of dedicated StCBs is expected to bridge this gap by introducing a two-tier cooperative structure, supporting existing cooperatives and improving access to formal credit.
The initiative is part of a broader national strategy aimed at reinforcing the cooperative banking ecosystem, especially in regions that remain underserved. Presently, 42 districts across India lack District Central Cooperative Bank (DCCB) coverage. Among them, 38 districts have branches of their respective State Cooperative Banks but no dedicated DCCBs, while four districts—one in Uttar Pradesh and three in Jharkhand—have neither DCCB nor StCB branches.
To address this, the government has proposed the establishment of 240 new DCCBs, aimed at strengthening the Short-Term Cooperative Credit Structure (STCCS) and ensuring widespread financial access.
As of 31st March 2023, India’s STCCS comprises:
- 34 State Cooperative Banks with 2,102 branches
- 350 District Central Cooperative Banks (DCCBs) operating 13,644 branches
- 1,04,234 Primary Agricultural Credit Societies (PACS) functioning across 34 states and Union Territories
The proposed expansion is expected to bring uniformity and depth to cooperative credit delivery, particularly in remote and financially excluded areas, thereby supporting inclusive economic growth across the country.
News: Source: Indian Cooperative
