Digital Revolution: Transforming Urban Cooperative Banks

Union Cooperation Minister Amit Shah launched Sahakar Digi Pay and Sahakar Digi Loan apps to bolster urban cooperative banks in the shift towards a cashless economy. He emphasized modernizing UCBs, reducing NPAs, and expanding their reach, while highlighting the importance of digital payment adoption and redesigning financial strategies.

In a significant push towards digitization, Union Cooperation Minister Amit Shah has unveiled the 'Sahakar Digi Pay' and 'Sahakar Digi Loan' applications, aiming to modernize urban cooperative banks (UCBs) nationwide. These initiatives come as crucial steps in ensuring the survival of UCBs in a rapidly evolving cashless economy.

At a two-day international conference on the urban cooperative credit sector, Shah underscored the reduction of non-performing assets in UCBs from 2.8% to 0.6% over two years, attributing this success to the Reserve Bank of India's efforts in modernizing these institutions. He encouraged the expansion of UCBs to every town with over 200,000 residents and converting successful cooperative credit societies into UCBs.

Shah highlighted the necessity of adapting to digital payment modes, setting a target for onboarding 1,500 banks onto the digital platform within two years. Further, he advocated for a financial focus on entrepreneurship and aiding economically disadvantaged communities, projecting these efforts as pivotal to national progress beyond GDP growth.

(With inputs from agencies.)