The Ministry of Cooperation has undertaken several initiatives to strengthen the cooperative sector and realize the vision of 'Sahakar-se-Samriddhi', focusing on cooperation-based economic development and socio-economic upliftment of small and marginal farmers, traders, and weaker sections. These initiatives specifically enable cooperative banks to carry out banking and allied financial activities at par with commercial banks, including acting as 'Corporate Agents' for the distribution of insurance products.
The measures are designed to diversify the business portfolio of cooperative banks, strengthen their financial viability and competitiveness, enhance fee-based income, and promote financial inclusion. Additionally, these initiatives ensure expanded access to quality banking and insurance services through the cooperative banking network, particularly in rural, semi-urban, and underserved areas.
A significant regulatory change facilitated by the Ministry's efforts is the RBI's removal of the minimum net worth requirement of ₹50 crore for Rural Cooperative Banks to obtain a Corporate Agent licence for insurance product distribution. This change enables greater participation of cooperative banks in the insurance sector and expands access to insurance services across the country.
Union Home Minister and Minister of Cooperation, Shri Amit Shah, provided this information in a written reply in Lok Sabha on July 28, 2026, as part of the Azadi Ka Amrit Mahotsav initiatives.