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Amit Shah Launches Sahakar Digipay and Digiloan to Modernize Urban Co-operative Banks

The NUCFDC push sets a two-year goal to onboard 1,500 banks to new digital rails.

Overview

  • Unveiled at Co-op Kumbh 2025 in Delhi, the NUCFDC suite targets India’s 1,400-plus UCBs serving over 9 crore customers through nearly 11,500 branches.
  • Sahakar Digipay provides a centralized UPI switch designed to lower transaction costs while adding fraud detection and risk-mitigation controls for secure, scalable payments.
  • Sahakar Digiloan functions as a paperless loan origination system with digital KYC, automated credit assessment, and real-time risk identification to speed lending decisions.
  • Shah set rollout goals that include onboarding 1,500 banks within two years and urged NAFCUB to add at least one UCB in every town with over 2 lakh people within five years.
  • Officials cited sector improvements with NPAs falling to 0.6% from 2.8% over two years, even as leaders flagged stressed institutions and noted recent RBI curbs on Pusad Urban Co-op Bank.