Amit Shah to launch several projects as Ministry of Cooperation completes five years
UPSC CSE Context Why in News: Ministry of Cooperation completes five years; Amit Shah launches 47 grain storage godowns, core banking platform, and AI powered Sahakar Sahyogi. Syllabus Connection: GS Paper 3: Indian Economy – cooperative sector, agriculture marketing, financial inclusion. GS Paper 2: Government policies and interventions. Exam Relevance: Highlights government's push for cooperative sector revival, financial inclusion, and rural economic transformation through multi purpose PACS, dairy cooperatives, and digital platforms. Core Issue Ministry of Cooperation marks five years with new projects and policy achievements. Key Development: Launch of 47 grain storage godowns, centralized core banking for UCBs, and Sahakar Sahyogi AI platform. Stakeholders: Urban Cooperative Banks Primary Agricultural Credit Societies Dairy Cooperative Societies NCDC RBI CGTMSE Bharat Taxi Static Knowledge High Value Background: Ministry of Cooperation was created in 2021 to strengthen the cooper
## UPSC CSE Context **Why in News:** Ministry of Cooperation completes five years; Amit Shah launches 47 grain storage godowns, core banking platform, and AI-powered Sahakar Sahyogi. **Syllabus Connection:** GS Paper 3: Indian Economy – cooperative sector, agriculture marketing, financial inclusion. GS Paper 2: Government policies and interventions. **Exam Relevance:** Highlights government's push for cooperative sector revival, financial inclusion, and rural economic transformation through multi-purpose PACS, dairy cooperatives, and digital platforms. ## Core Issue Ministry of Cooperation marks five years with new projects and policy achievements. **Key Development:** Launch of 47 grain storage godowns, centralized core banking for UCBs, and Sahakar Sahyogi AI platform. **Stakeholders:** - Urban Cooperative Banks - Primary Agricultural Credit Societies - Dairy Cooperative Societies - NCDC - RBI - CGTMSE - Bharat Taxi ## Static Knowledge **High-Value Background:** - Ministry of Cooperation was created in 2021 to strengthen the cooperative movement, which is a constitutional right under Article 43B. - PACS are grassroots-level credit societies that form the base of the three-tier cooperative credit structure in India. **Exam Linkage:** - Useful for questions on cooperative federalism, financial inclusion, and role of cooperatives in rural development. **Concepts in Context:** - White Revolution 2.0 aims to boost milk procurement by 50% through new dairy cooperatives and technology adoption. ## Dynamic Analysis ### Economy - Multi-purpose PACS model diversifies rural credit societies into service delivery hubs, enhancing rural economic activity. - Integration of PACS with CSCs, Jan Aushadhi Kendras, and fuel outlets reduces last-mile delivery gaps. - Relaxed branch expansion norms for UCBs may improve banking penetration but raises regulatory concerns. ### Governance - Model by-laws for PACS enable over 25 business activities, reducing dependence on agriculture credit alone. - Computerisation of 63,000 PACS on ERP platform improves transparency and efficiency. ### Agriculture and Rural Development - 47 new grain storage godowns address post-harvest losses and strengthen food security infrastructure. - Dairy cooperative expansion under White Revolution 2.0 can boost rural incomes and women empowerment. - RuPay KCC for dairy farmers improves access to affordable credit for livestock-related expenses. ## Prelims Takeaways - Ministry of Cooperation was established on July 6, 2021. ## Mains Value Addition **Arguments:** - Cooperative sector can bridge the gap between formal financial institutions and rural poor. - Multi-purpose PACS model aligns with vision of 'Sahakar se Samriddhi' by integrating various government schemes. - Digital platforms like Sahakar Sahyogi and core banking for UCBs enhance efficiency and customer reach. **Data Points:** - 37,000 new PACS, dairy, and fishery cooperatives registered since 2023. **Counterpoints:** - Credit guarantee cover up to 85% could lead to reckless lending if not monitored. - Zero-commission model may face viability challenges without aggregator revenue streams. ## Way Forward - Strengthen regulatory oversight of UCBs to balance expansion with financial stability. - Integrate PACS with digital payment systems to enhance financial inclusion.
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