Gujarat has taken a significant step towards enhancing cooperative banking in the state by launching a pilot project in Banaskantha and Panchmahal districts. This initiative aims to strengthen cooperative financial models under the vision of ‘Prosperity Through Cooperation’, as set forth by the Prime Minister. The project will see all dairy and PACS (Primary Agricultural Credit Society) members open accounts in their district cooperative banks.
On May 12, 2025, a review meeting was held at the Gandhinagar Circuit House, led by Cooperation Minister Jagdishbhai Vishwakarma. He provided insights into the pilot project named ‘Cooperation Amongst the Cooperative’. The minister also offered suggestions for expediting the project’s implementation and provided essential guidance.
Historically, the cooperative sector faced challenges due to a lack of financial resources. In response to this issue, Union Home and Cooperation Minister Amit Shah proposed that all cooperative institutions and their members should open accounts in district cooperative banks. This move embodies one of the seven principles of cooperation: fostering a spirit of cooperation among cooperative institutions.
In line with this initiative, the Banaskantha and Panchmahal district cooperative banks have been chosen as pilot locations for this project. All dairy cooperatives and PACS in these districts will open accounts in the district cooperative banks. Additionally, PACS and dairy cooperatives will act as bank friends to facilitate financial transactions.
To promote digital transactions, micro-ATMs and ATMs have been installed at cooperative society premises. Members are being trained to carry out necessary digital transactions. Furthermore, KCC (Kisan Credit Card) and Rupee KCC cards are being issued to meet the financial needs of dairy and PACS members. This pilot project has enabled members to receive digital financial services right at their doorstep.
The project has also introduced a commission system for PACS and dairy cooperatives acting as bank friends, leading to increased revenue for these societies. Within a few months, the financial inflow of district cooperative banks has seen a notable increase. This improvement has facilitated easier access to loans for individuals linked to the cooperative financing structure.
As of January 15, 2024, the state government has implemented this project across Gujarat, resulting in the opening of 23,94,900 new accounts in district cooperative banks. Deposits have increased by ₹11,095 crore, and 6,689 new micro ATMs have been installed. A total of 6,856 dairy and PACS cooperatives have been appointed as bank friends. Additionally, 2,27,537 new Rupee KCC cards have been issued, along with 3,35,299 new KCC and KCC (AH) cards.
The project has significantly boosted the number of transactions conducted through micro ATMs at the village level. Since the project’s implementation, 84.96 lakh transactions worth ₹6,170 crore have been processed. The success of this initiative in Gujarat is now being considered for implementation across India.
During the meeting, Cooperation Minister Jagdishbhai Vishwakarma reviewed the project and provided further guidance to ensure its success. The meeting was attended by prominent figures, including the Speaker of the Gujarat Assembly, Shankarbhai Chaudhary, and various chairpersons from dairy unions and district cooperative banks across the state.
Overall, this pilot project represents a vital step towards enhancing cooperative banking in Gujarat and improving the financial well-being of its members. By fostering cooperation and enabling digital transactions, it aims to drive prosperity in the cooperative sector and serve as a model for similar initiatives nationwide.
Leave a Reply