To modernize the IT infrastructure of India’s rural cooperative banking system, the Ministry of Cooperation has called on State Registrars of Cooperative Societies (RCS) to direct State Cooperative Banks (SCBs) to prioritize Sahakar Sarathi, a Shared Services Entity (SSE) set up by NABARD, over private vendors. This directive was reinforced during the recent Manthan Baithak held in the national capital.
Push for Digital Transformation in Rural Banking
The initiative is a key part of the Centre’s broader digital push in the financial ecosystem, especially in underserved rural areas. Sahakar Sarathi, envisioned as a digital backbone for rural cooperative banks (RCBs), received in-principle approval from the Reserve Bank of India (RBI) on April 2, 2025. It aims to provide centralized IT services to RCBs, including banking software, cybersecurity tools, and payment systems integration — all under a pay-per-use model.
The Ministry has requested all RCS offices to encourage SCBs to onboard this platform for their IT needs, citing cost-efficiency, standardization, and enhanced security as key benefits. The model is designed to reduce dependence on fragmented and often costly third-party IT vendors.
Capital Structure and Participating Stakeholders
Sahakar Sarathi has been incorporated with an authorized capital of ₹1,000 crore. The equity is equally distributed between NABARD, the National Cooperative Development Corporation (NCDC), and the participating RCBs. This collaborative structure is expected to ensure not just financial sustainability but also stakeholder accountability in delivering high-quality digital services.
The Ministry also asked RCS offices to proactively assist SCBs in obtaining approvals required for contributing to the share capital of Sahakar Sarathi. This move is likely to fast-track the onboarding process and improve grassroots-level adoption of digital infrastructure.
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Bridging the Digital Divide in Banking
The launch of Sahakar Sarathi is being hailed as a game-changer for India’s 97,000+ cooperative banking institutions, many of which struggle with outdated IT systems. By offering modern, scalable, and secure digital services, the SSE aims to bridge the digital divide between rural and urban banking systems.
Officials believe that this initiative will bring greater transparency, operational efficiency, and regulatory compliance to the cooperative banking sector, which serves millions of low-income households and small-scale farmers.
With continued government backing and structured guidance from institutions like NABARD and NCDC, Sahakar Sarathi could redefine rural banking in India by ensuring inclusive access to robust digital infrastructure.