Co-op Banks Embrace the Digital Age with New Mobile Applications
In a significant step towards modernizing the urban cooperative banking sector, Union Cooperation Minister Amit Shah launched two mobile applications, 'Sahakar Digi Pay' and 'Sahakar Digi Loan,' on Monday. The launch signifies a strong push for digital payment adoption, which Shah emphasized is crucial for the survival and growth of these banks in an increasingly cashless economy.
Speaking at a two-day international conference focused on the urban cooperative credit sector, Shah lauded the ongoing efforts to professionalize urban cooperative banks (UCBs) and cooperative credit societies. He also acknowledged the Reserve Bank of India's (RBI) role in facilitating the modernization of these institutions. Shah highlighted the improved financial health of the sector, noting a substantial decrease in non-performing assets (NPAs) from 2.8% to 0.6% over the past two years. He urged the National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) to pursue further expansion, setting an ambitious goal of establishing at least one UCB in every town with a population exceeding two lakh within the next five years. Shah also encouraged the federation to convert successful cooperative credit societies into UCBs.
The 'Sahakar Digi Pay' app is designed to facilitate digital payments, addressing the evolving preferences of customers. Minister Shah stressed that UCBs must adapt to the increasing adoption of digital payment methods to remain competitive. He set a target of onboarding 1,500 banks onto the platform within the next two years. In addition to 'Sahakar Digi Pay,' the 'Sahakar Digi Loan' app aims to streamline loan application and disbursement processes, making it easier for individuals and small businesses to access credit.
Shah also advocated for UCBs to redesign their financial strategies to focus on supporting young entrepreneurs and economically disadvantaged communities. He emphasized that national progress should not be solely measured by GDP growth but should also encompass livelihood creation and poverty reduction, areas where cooperative banks can play a vital role.
Since the establishment of a separate Cooperation Ministry in 2021-22, the central government has introduced several policy reforms aimed at modernizing the cooperative sector. Despite cooperation being a state subject, the central government is providing policy guidance to ensure uniformity and promote best practices. The launch of these mobile applications represents a significant step forward in this ongoing modernization effort, promising to bring greater efficiency, transparency, and accessibility to the urban cooperative banking sector.
