National Bank for Agriculture and Rural Development (NABARD) Chairman Shaji K V announced that all cooperative banks are expected to be fully digitized by March 2025. This move aims to streamline operations and enhance efficiency in these vital financial institutions. Speaking at a CII event, he highlighted that the Reserve Bank of India (RBI) has mandated cooperative banks to adopt the Core Banking Solution (CBS), marking a significant step towards modernization.
The digitization process, undertaken in collaboration with the central government, will invite fintech companies to develop technology solutions for these banks’ digitized databases and transaction platforms. “We will have a fully digital system by 2025, and fintech partnerships will help leverage the database for enhanced operational efficiency,” Shaji said.
He also mentioned plans to establish a common shared services entity for rural cooperatives nationwide. The government and RBI have given in-principle approval to set up a dedicated company to drive digital adoption in collaboration with NABARD and cooperative banks.
In addition, the Finance Ministry’s roadmap includes the merger of 15 Regional Rural Banks (RRBs) in states like Andhra Pradesh, Uttar Pradesh, and West Bengal to achieve cost rationalization and operational efficiency, further boosting rural banking reforms.
