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Gujarat Cabinet Gives In-Principle Nod to Create Nine District Central Cooperative Banks

The plan now goes for RBI review through NABARD before any new bank can open.

Overview

  • The decision was taken at a cabinet meeting chaired by Chief Minister Bhupendra Patel, with details announced by government spokesperson Jitu Vaghani.
  • New banks are proposed for Dahod, Aravalli, Tapi, Chhota Udepur, Devbhumi Dwarka, Porbandar, Anand, Dang and Navsari.
  • The institutions will be carved out by splitting existing District Central Cooperative Banks to align with districts formed from earlier bifurcations.
  • Officials framed the move as part of a national push led by Prime Minister Narendra Modi and Union Cooperation Minister Amit Shah, following an approach note from NABARD.
  • The government says the restructuring aims to ease farmers' access to credit and strengthen the rural economy, with legal and statutory steps still pending before operations can begin.