Policy Aims to Modernise Cooperatives, Deepen Member Participation and Transform PACS into Rural Service Hubs
The Tribhuvan Sahkari University will serve as the apex institution for cooperative education and training.
India has taken a decisive step to revitalise and modernise its vast cooperative ecosystem with the unveiling of the National Cooperative Policy (NCP), 2025. Announced by the Government of India and detailed by the Ministry of Cooperation, the policy lays down a comprehensive framework to strengthen democracy, transparency, trust and efficiency within cooperatives across the country. Rooted in the vision of empowering members and restoring cooperatives to their original people-centric ethos, the policy emphasises autonomy, good governance, digital transformation and youth participation.
The National Cooperative Policy, 2025 reflects India’s commitment to making cooperatives professionally managed, democratically governed and economically vibrant institutions. It also aligns with the broader national goal of inclusive growth by transforming cooperatives into effective vehicles for rural development, farmer welfare, employment generation and grassroots economic empowerment.
Strengthening Democracy and Autonomy in Cooperative Institutions
A central pillar of the National Cooperative Policy, 2025 is the strengthening of democratic functioning and institutional autonomy of cooperatives. India has encouraged States and Union Territories to suitably amend their respective Cooperative Societies Acts and Rules to ensure autonomous functioning, democratic member control and enhanced ease of doing business.
The policy stresses the need for free and fair elections of Boards of Directors and office bearers, transparent recruitment processes, and corruption-free governance structures. By reinforcing these principles, the policy seeks to rebuild trust among members and ensure that cooperatives function as truly member-owned and member-driven institutions. The emphasis on autonomy also aims to reduce excessive external interference, allowing cooperatives to take timely decisions, innovate in their operations and respond effectively to local economic needs.
Digitalisation and Member-Centric Governance
Digital transformation is a key enabler under the National Cooperative Policy, 2025. India has encouraged States and UTs to completely digitalise the offices of Registrars of Cooperative Societies, making them paperless and technology-driven. This shift is designed to facilitate seamless online communication between cooperatives and Registrar offices through web portals, email and mobile-based platforms.
Alongside this, the policy promotes the adoption of model bye-laws across different cooperative sectors and tiers to strengthen member participation. These bye-laws focus on activating dormant members, collecting member-centric feedback, promoting women and weaker sections, ensuring transparency in decision-making and encouraging the induction of young, qualified professionals. Together, these measures place members firmly at the centre of cooperative governance, restoring confidence and accountability in the system.
Tribhuvan Sahkari University: Building Knowledge and Leadership
To address long-standing gaps in cooperative education and capacity building, India has positioned the Tribhuvan Sahkari University (TSU) as the apex institution for cooperative education, training and research. The university will implement standardised curricula and modern teaching methodologies through affiliated institutions, Centres of Excellence and campuses across the country.
The appointment process for the first Vice-Chancellor of TSU was initiated in July 2025, with applications invited through national dailies and the Ministry of Education’s e-Samarth portal. A Search-cum-Selection Committee has been constituted as per university statutes. TSU is expected to play a transformative role in nurturing professional leadership, improving managerial capabilities and creating a new generation of cooperative professionals aligned with global best practices and Indian realities.
Transforming PACS into Multi-Service Rural Hubs
A major thrust of the National Cooperative Policy, 2025 is the transformation of Primary Agricultural Credit Societies (PACS) into vibrant, multi-service rural institutions. India has prepared and circulated Model Bye-laws for PACS to all States and UTs, enabling them to undertake more than 25 business activities.
These reforms aim to improve governance, transparency and accountability while linking PACS with major central schemes such as PM-KISAN, Pradhan Mantri Kisan Samriddhi Kendra (PMKSK) and Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK). The Ministry of Cooperation has taken multiple steps to position PACS as local-level service delivery hubs for farmers, integrating financial services, agricultural inputs, healthcare access and essential public services under one institutional framework.
ERP Integration and Multi-Sectoral Scheme Convergence
Under a centrally sponsored project for PACS computerisation, India has rolled out an ERP-enabled unified digital platform integrating key national databases and schemes. This includes PM-KISAN, PMFBY, fertiliser and seed distribution, PDS outlets, LPG and fuel dealerships, Common Service Centres and Jan Aushadhi Kendras.
PACS have been enabled to function as PMKSKs, CSCs and PMBJKs, significantly expanding their role beyond credit delivery. As of now, over 38,000 PACS have been upgraded to PMKSKs, more than 51,000 PACS are functioning as CSCs, and hundreds have been approved for Janaushadhi stores, petrol pumps, LPG distributorships and rural water supply operations. These measures collectively reposition PACS as the backbone of rural service delivery and economic resilience.
Amit Shah Highlights Cooperative Reform in Parliament
This comprehensive information on the National Cooperative Policy, 2025 was shared by Union Minister for Home and Cooperation Shri Amit Shah in a written reply in the Lok Sabha. The policy signals India’s intent to rejuvenate the cooperative movement by blending democratic values with technology, professionalism and economic diversification.
By empowering members, strengthening institutions and integrating cooperatives with national development schemes, India aims to restore cooperatives as trusted, transparent and transformative institutions. The National Cooperative Policy, 2025 thus stands as a landmark reform, redefining the future of cooperatives as engines of inclusive growth and grassroots empowerment.
Table: Key Facts – National Cooperative Policy, 2025 (India)
| Aspect | Key Details |
|---|---|
| Policy Name | National Cooperative Policy (NCP), 2025 |
| Country | India |
| Announced By | Government of India |
| Ministry Involved | Ministry of Cooperation |
| Parliamentary Disclosure | Written reply in Lok Sabha |
| Minister Quoting Policy Details | Shri Amit Shah, Union Minister for Home and Cooperation |
| Date of PIB Release | 16 December 2025 |
| Core Objective | Strengthen democracy, autonomy, trust and good governance in cooperatives |
| Key Governance Reforms | Free & fair elections, democratic member control, transparent recruitment, autonomy |
| Legal Reforms | States/UTs encouraged to amend Cooperative Societies Acts & Rules |
| Digitalisation Focus | Complete digitalisation of Registrar of Cooperative Societies offices |
| Digital Tools Promoted | Web portals, e-mail, mobile-based communication, paperless processes |
| Model Bye-laws | Standardised bye-laws for cooperatives across sectors and tiers |
| Member-Centric Measures | Active participation, feedback mechanisms, activation of dormant members |
| Social Inclusion Goals | Increased membership of women and weaker sections |
| Youth & Talent Induction | Promotion of young and qualified manpower in cooperatives |
| Apex Education Institution | Tribhuvan Sahkari University (TSU) |
| Role of TSU | Cooperative education, training, research, standardised curricula |
| VC Appointment Status | Process initiated in July 2025 via e-Samarth portal |
| Selection Mechanism | Search-cum-Selection Committee as per university statutes |
| Key Focus Institution | Primary Agricultural Credit Societies (PACS) |
| PACS Reform Instrument | Model Bye-laws enabling over 25 business activities |
| Central Schemes Linked with PACS | PM-KISAN, PMKSK, PMBJK, PMFBY, PDS, Jan Aushadhi |
| ERP-Based Integration | Uniform digital platform integrating national farmer databases |
| PACS as PMKSKs | 38,330 PACS upgraded |
| PACS as CSCs | 51,183 PACS delivering 300+ e-services |
| PACS as Janaushadhi Kendras | 799 PACS issued store codes |
| Fuel Retail Eligibility | PACS eligible for petrol/diesel retail outlets |
| Bulk-to-Retail Conversion | 59 PACS commissioned as retail fuel outlets |
| LPG Distributorship | PACS eligible to apply for LPG distributorships |
| Water Supply O&M | 763 PACS selected in 11 States/UTs |
| Strategic Vision | Transform PACS into multi-service rural economic hubs |
| Long-Term Goal | Inclusive growth, farmer welfare and grassroots economic empowerment |
