Government Launches Sahakar Digi Pay and Sahakar Digi Loan Apps to Strengthen Urban Cooperative Banks

The government has launched two new digital initiatives Sahakar Digi Pay and Sahakar Digi Loan to support the modernisation and expansion of India’s urban cooperative banks (UCBs). 

These platforms aim to accelerate digital adoption in the cooperative sector and expand financial inclusion across urban areas through technology-driven solutions.

Strengthening the Urban Cooperative Network

The Sahakar Digi Pay and Sahakar Digi Loan apps are designed to help UCBs adopt digital payment and lending systems, ensuring they remain competitive as India transitions toward a cashless economy.

Through the Sahkar Digi-Pay app, even the smallest urban cooperative banks will be able to offer digital payment facilities

The government has emphasised that embracing digital transformation is essential for the long term viability and efficiency of cooperative banks.

Digital Transformation and Inclusion

The government has directed the National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) to onboard around 1,500 banks onto the Sahakar Digi Pay platform within two years. It also encouraged the conversion of successful cooperative credit societies into UCBs to further extend formal banking access.

Focus on Inclusive Growth

Officials highlighted that economic progress should not be measured by GDP alone but by its ability to create jobs and uplift lower-income groups. 

UCBs are being urged to design innovative financial products that support young entrepreneurs and marginalised communities, promoting balanced and inclusive growth.

Policy Reforms for a Unified Cooperative Framework

Since the creation of the Ministry of Cooperation in 2021-22, the government has implemented several policy measures to modernise the cooperative ecosystem.

Model bylaws for Primary Agricultural Credit Societies (PACS) have been adopted by all states, facilitating computerisation and expansion of their services.

Read More: UPI Smashes Records in October: 20.7 Billion Transactions Worth ₹27.28 Trillion.

Conclusion

The launch of the Sahakar Digi Pay and Sahakar Digi Loan apps marks a significant step in the government’s efforts to digitise and strengthen the urban cooperative banking sector. By integrating technology, encouraging expansion, and promoting inclusion, the initiative aims to enhance the role of cooperative banks in India’s financial growth story.

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