Parliament Parliament of India
Bill redefines co-operative development to include direct loans and grants
This Bill amends the National Co-operative Development Corporation Act, 1962, to broaden the Corporation's mandate from working only through co-operative societies to supporting 'co-operative development' generally.
It allows the Corporation to provide direct loans and grants to entities engaged in co-operative development and to participate in their share capital, aiming to remove procedural delays and expand financial support for the sector.
Who it concerns: The National Co-operative Development Corporation (NCDC), co-operative societies, and any entity engaged in co-operative development (including statutory bodies, State Government agencies, and specialized entities).
What the bill does
- Redefines 'co-operative development' to include planning, promoting, and financing programs directly or through intermediaries.
- Expands the definition of 'foodstuffs' to include processed food, other edible products, and any other food items notified by the Central Government.
- Removes the geographical restriction on 'industrial goods,' allowing assistance for such activities irrespective of location (rural or otherwise).
- Allows the Corporation to provide loans and grants directly to co-operative societies or entities engaged in co-operative development, subject to security requirements.
- Permits the Corporation to participate in the share capital of co-operative societies or development entities with Central Government approval.
- Inserts a new section granting the Corporation incidental powers necessary for its functions.
- Inserts a new section allowing the Corporation to collect and furnish credit information to the Central Government, Reserve Bank, or notified financial institutions.
- Updates references from the Multi-State Co-operative Societies Act, 1984, to the Multi-State Co-operative Societies Act, 2002.
- Omits obsolete provisions, including Section 2A (regarding Jammu and Kashmir) and references to Central financing institutions in the General Council composition.
Also in the document
- The Bill is an amendment to an existing Act from 1962.
- The Financial Memorandum states that the Bill would not involve any expenditure from the Consolidated Fund of India.
- The Bill was introduced in Lok Sabha by Shri Amit Shah, Minister of Home Affairs and Cooperation.
Where this bill is now: Became law (Act)
How this was written
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The original document
Parliament of India — Bills (Lok Sabha & Rajya Sabha)
Bill / law · Ref. 156 · 11 Aug 2026
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