The Government of India has launched Sahakar Sarathi, an important initiative aimed at modernising and strengthening the rural cooperative banking sector. This initiative forms part of the government’s broader vision to digitally empower rural India and enhance financial inclusion, particularly for cooperatives and farming communities that rely heavily on cooperative banks for credit and banking services.
Sahakar Sarathi has been set up as a Shared Service Entity to provide a common technology and service platform for Rural Cooperative Banks (RCBs). For decades, many rural cooperative banks have faced challenges such as limited digital infrastructure, high operational costs, and difficulty in competing with commercial banks. Sahakar Sarathi seeks to bridge this gap by offering standardised digital solutions that enable cooperative banks to deliver efficient and modern banking services.
The entity was formally registered in July 2025 after receiving approval from the Reserve Bank of India. It has an authorised capital of ?1,000 crore, with equity participation from NABARD, the National Cooperative Development Corporation, and rural cooperative banks. This ownership structure reflects the cooperative spirit while ensuring professional oversight and institutional support.
One of the primary objectives of Sahakar Sarathi is to create a shared digital backbone for rural cooperative banks. Through this platform, banks can access Common Core Banking Solutions, digital payment systems such as UPI and Aadhaar Enabled Payment Systems, and robust cybersecurity frameworks. By adopting shared infrastructure, smaller cooperative banks can significantly reduce costs while offering services comparable to those provided by large commercial banks.
The initiative was unveiled during the Earth Summit 2025 in Gandhinagar, where the Union Minister for Home and Cooperation highlighted its importance in strengthening rural financial institutions. He emphasised that cooperative banks play a crucial role in rural development and that digital transformation is essential for their sustainability. Along with Sahakar Sarathi, several other digital tools aimed at improving governance, loan processing, and credit delivery for cooperatives were also introduced.
The expected impact of Sahakar Sarathi is wide-ranging. Digitalisation of rural cooperative banks will improve customer experience, enhance transparency, and increase operational efficiency. Farmers, self-help groups, and small entrepreneurs in rural areas will benefit from faster access to credit, digital payment facilities, and secure banking services. This will help deepen financial inclusion and support rural economic growth.
Sahakar Sarathi also aligns with the broader cooperative reform agenda of the Ministry of Cooperation. The government has undertaken multiple measures to revitalise cooperative institutions and make them more self-reliant and technology-driven. These reforms aim to strengthen cooperatives as engines of rural development, employment generation, and social stability.
In conclusion, Sahakar Sarathi represents a significant step towards modernising India’s rural cooperative banking system. By providing a shared digital platform and essential banking services, the initiative empowers cooperative banks to serve rural communities more effectively. It reinforces the role of cooperatives in achieving inclusive growth and building a digitally empowered rural India.