India Introduces Bill to Expand NCDC Cooperative Funding Powers

The Government of India introduced the National Cooperative Development Corporation (Amendment) Bill, 2026 in the Lok Sabha on August 10, 2026. Introduced by Union Cooperation Minister Amit Shah and Minister of State for Cooperation Murlidhar Mohol, the legislation seeks to expand the mandate of the National Cooperative Development Corporation (NCDC), a statutory body under the Ministry of Cooperation.

The bill enables the NCDC to provide loans and grants directly to cooperative societies and other entities engaged in cooperative development. This removes previous requirements to route funds through state governments or cooperative societies, a process that often caused procedural delays. Additionally, the amendment proposes allowing the NCDC to participate in the share capital of cooperatives with central government approval, expanding the definition of foodstuffs, and removing geographical restrictions on industrial goods.

These changes follow the 2021 creation of the Ministry of Cooperation and aim to strengthen the sector's financial ecosystem. The NCDC reported disbursements of Rs 1 lakh crore by January 15, 2026. To further increase lending capacity, the government approved a Rs 2,000-crore grant-in-aid scheme designed to help the NCDC mobilize up to Rs 20,000 crore from the open market.