Increase in farmer's income through cooperation

Posted On: 25 MAR 2026 4:44PM by PIB Delhi The Government of India, under the vision of &ldquo;Sahakar-se-Samriddhi&rdquo;, has undertaken several measures to strengthen & diversify the Cooperative Sector. These measures are directly/indirectly benefitting the rural economy and enhancing farmer’s income. The l ist of such initiatives is attached as Annexure . The Dairy Sahakar Yojana, launched in 2021&ndash;22 and implemented by the National Cooperative Development Corporation (NCDC) under the Ministry of Cooperation, aims to strengthen dairy cooperatives by providing dedicated financial support for infrastructure creation, modernization, and expansion of dairy projects. The scheme seeks to promote economic development through cooperative institutions by enhancing production, productivity, and value addition in the dairy sector. It also encourages cooperatives to adopt environmentally sustainable and socially responsible practices, thereby contributing to improved outcomes in Environmental, Social, and Governance (ESG) parameters. The scheme functions as an umbrella framework to facilitate streamlined financial assistance to dairy cooperatives. Any entity registered under State/ Multi State Cooperative Societies Act in the country, with suitable provision in its bye-laws to undertake activities related to dairy, shall be eligible for financial assistance under Dairy Sahakar subject to fulfilment of guidelines of NCDC and applicable dovetailed scheme(s). Since 31.10.2021 to 19.03.2026, the NCDC has provided financial assistance of Rs 765.98 crore. The State &ndash;wise details of number of dairy cooperatives supported under the yojana are as follows: S. No. State No. of beneficiary societies Amount Disbursed (Rs. in crore) 1 Gujarat 9474 369.81 2 Uttarakhand 2766 23.49 3 Bihar 1410 34.72 4 Maharashtra 1491 1.8 5 Odisha 943 0.81 6 Tamil Nadu 175 37.33 7 Telangana 3018 51.93 8 Rajasthan 679 240.69 9 Kerala 1 5.4 Total 19957 765.98 NCDC has not received any proposal from the State of Karnataka under Dairy Sahakar during last three years. **** Annexure Initiatives Taken by the Ministry of Cooperation Ministry of Cooperation, since its inception on 6 th July, 2021, has undertaken several initiatives to realize the vision of &ldquo;Sahakar-se-Samriddhi&rdquo; and to strengthen & deepen the cooperative movement from Primary to apex-level Cooperatives in the country. The list of initiatives taken, including progress made so far is as follows: Making Primary Cooperatives economically vibrant and transparent Model Bye-Laws for Primary Agriculture Credit Societies (PACS), making them multipurpose, multidimensional, and transparent entities : Government, in consultation with all the stakeholders, including States/ UTs, National Level Federations, State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), etc., has prepared and circulated Model Bye-laws for PACS to all the States/ UTs, which enable PACS to undertake more than 25 business activities, improve governance, transparency, and accountability in their operations. Provisions have also been made to make the membership of PACS more inclusive and broad-based, giving adequate representation to women and the Scheduled Castes/Scheduled Tribes. So far, 32 States/ UTs have adopted Model Bye-laws or their existing bye-laws are in line with Model Bye-laws. Strengthening of PACS through Computerization : To strengthen PACS, a project for the Computerization of functional PACS with a total financial outlay of ₹2925.39 Crore has been approved by the Government of India, which entails bringing all functional PACS in the Country onto a common ERP-based national software, linking them with National Bank for Agriculture and Rural Development (NABARD) through StCBs and DCCBs. A total of 79,630 PACS from 31 States/ UTs have been sanctioned under the project. A total of 61,025 PACS have been onboarded on Enterprise Resource Planning (ERP) Software, and hardware has been procured by 30 States/UTs. Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives to cover all the Panchayats : The Government of India has approved the plan to establish new multipurpose PACS/dairy/fisheries cooperatives, aiming to cover all panchayats and villages in the country over the next five years. This initiative is supported by NABARD, National Dairy Development Board (NDDB), National Fisheries Development Board (NFDB), and State/UT Governments. As per the National Cooperative Database, a total of 32,802 new PACS, Dairy and Fishery Cooperative Societies have been registered; and 15,793 Dairy and Fisheries Cooperative Societies have been strengthened as on 20.01.2026 across the country since the approval of the plan on 15.2.2023. Launch of Margdarshika/ SOP for Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives in covering all the Panchayats: To ensure effective and timely implementation of the plan, the Ministry of Cooperation, in coordination with NABARD, NDDB, and NFDB, has launched a Standard Operating Procedure (Margdarshika) on 19.9.2024, indicating the targets and timelines for all stakeholders concerned World’s Largest Decentralized Grain Storage Plan in the Cooperative Sector : Government has approved a plan to create warehouses, custom hiring centers, primary processing units and other agri-infrastructure for grain storage at PACS level, through convergence of various Government of India (GOI) schemes, including Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME), etc. This will reduce wastage of food grains and transportation costs, enable farmers to realize better prices for their produce and meet various agricultural needs at the PACS level itself. Under the pilot project, construction of godowns in 11 PACS of 11 States has been completed. Further, under the Extended Pilot, more than 500 PACS across the country have been identified for the construction of godowns under the World’s Largest Grain Storage Plan in the Cooperative Sector. Currently, the State Department of Food and Civil Supplies, National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), and National Cooperative Consumers Federation of India Limited (NCCF) have given hiring assurance for godowns to be constructed in 287 PACS, and construction work has commenced in 208 PACS, out of which construction completed in 109 PACS (Rajasthan. -90, Maharashtra- 15 and Gujarat - 4) Launch of Margdarshika/ SOP for World’s Largest Grain Storage Plan in Cooperative Sector : A comprehensive Standard Operating Procedure (SOP) - &ldquo;Margdarshika&rdquo; has been developed and shared with the States/ UTs for the smooth and uniform implementation of the Plan. The Margdarshika includes: formation of various committees under the scheme, decisions taken in the Inter-Ministerial Committee (IMC), introduction and benefits of various converged schemes under the plan, application procedure, phase-wise implementation flowchart of the grain storage project, expected outcomes and defined timelines, roles and responsibilities of the Ministry of Cooperation and other stakeholders, Warehousing Development and Regulatory Authority (WDRA) guidelines for the construction of godowns, criteria for the selection of PACS under the scheme. Amendments made under AMI Scheme with regard to World’s Largest Grain Storage Plan: Based on the decisions taken in the 2nd IMC meeting of World’s Largest Grain Storage Plan in the Cooperative Sector, held on 23.10.2024, the Department of Agriculture and Farmers Welfare has made the following amendments under the AMI scheme: To enhance the financial viability of the scheme, the margin money requirement has been reduced from 20% to 10%. The construction cost has been revised from ₹3000&ndash;3500/MT to ₹6000 - 7000/MT for plain areas and from ₹4000/MT to ₹8000/MT for northeastern states. The subsidy has been increased from 25% to 33.33% (from ₹875/MT to ₹2333/MT for plain areas and from ₹1333.33/MT to ₹2666/MT for northeastern states). For PACS, a provision has been made to provide an additional subsidy of 1/3 (one third) of the total admissible subsidy for ancillary infrastructure such as internal roads, weighbridges, boundary walls, etc. Developments pertaining to FCI regarding identification and issuance of Hiring Assurance to Godowns under the World’s Largest Grain Storage Plan in the Cooperative Sector: Based on the decisions taken in the meeting held on 2.6.2025 under the chairmanship of Hon’ble Home and Cooperation Minister, Food Corporation of India (FCI) has been entrusted to identify PACS, provide hiring assurance, and ensure the annual hiring of these warehouses. The following progress has been made: In Phase I, FCI has identified 216 potential locations for hiring of godowns of 2500 MT and above (1671 MT and above for North Eastern and Hilly areas) About 26.03 LMT Storage requirement has been mapped by FCI in these potential 216 locations in 18 States /UTs. States have identified 173 PACS/Cooperative Societies and are actively identifying additional PACS/Cooperative Societies PACS as Common Service Centers (CSCs) for better access to e-services : An MoU has been signed between the Ministry of Cooperation, the Ministry of Electronics and Information Technology (MeitY), NABARD, and CSC e-Governance Services India Limited for providing more than 300 e-services such as banking, insurance, Aadhar enrolment/ updation, health services, PAN card, and IRCTC/ Bus/ Air ticket, etc., through PACS. So far, 52,018 PACS have started providing CSC services to rural citizens. Formation of new Farmer Producer Organizations (FPOs) by PACS: Under the Central Sector Scheme - Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs), National Cooperative Development Corporation (NCDC) is one of the Implementing Agencies designated by the Department of Agriculture and Farmers Welfare (DA&FW), Ministry of Agriculture and Farmers Welfare, Government of India, towards the formation and promotion of FPOs under the Cooperative Societies Act. The target for the formation and promotion of 746 FPOs was assigned by DA&FW to NCDC, and NCDC registered 746 FPOs in the cooperative sector. Thereafter, with the initiative of Ministry of Cooperation, Government of India, additional target of Farmer Producer Organizations (FPOs) was allocated to NCDC by Ministry of Agriculture and Farmers Welfare, GoI, for formation and promotion of FPOs in cooperative sector through strengthening of PACS under the scheme and NCDC got target of 1117 FPOs and registered/onboarded 1117 FPOs through the members of PACS. This will help provide farmers with necessary market linkages and a fair and remunerative process for their produce. NCDC has disbursed ₹245 crore to FPOs/Cluster-Based Business Organizations (CBBOs) under the scheme as of 15.01.2026. PACS given priority for Retail Petrol/ Diesel outlets : The Government has allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. As per information received from Oil Marketing Companies (OMCs), 394 PACS from 28 States/UTs have applied online for retail petrol/ diesel outlets. PACS permitted to convert bulk consumer petrol pumps into retail outlets : The existing bulk consumer licensee PACS have been given a one-time option by Oil Marketing Companies to convert into retail outlets. As per information shared by OMCs, 115 wholesale consumer pump licensee PACS from 5 States have given consent for conversion into Retail Outlets, out of which 62 PACS have been commissioned by the OMCs. PACS eligible for LPG Distributorship for diversifying its activities : The Government has now allowed PACS to apply for LPG Distributorships. This will give PACS an option to increase their economic activities and diversify their income stream. PACS as PM Bharatiya Jan Aushadhi Kendra for improving access to generic medicines at the rural level : PACS have been allowed to operate Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs), which will provide an additional income source to them and ease the access to quality generic medicines for rural citizens. So far, 4,192 PACS/ cooperative societies have applied online for PMBJKs, out of which 4,177 PACS have been given initial approval by the Pharmaceutical & Medical Devices Bureau of India (PMBI), and 814 PACS have received store codes from PMBI, which are ready to function as PM Bhartiya Jan Aushadhi Kendras. PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK): PACS have been enabled to operate PMKSK for ensuring easy accessibility of fertilizer & related services to farmers in the country. As per the information shared by the States/ UTs, as on 27 th November, 2025, a total of 38,190 PACS are functioning as PMKSK. PACS to carry out O&M of rural piped water supply schemes (PWS) : PACS have been made eligible to carry out the Operations & Maintenance (O&M) of PWS in rural areas. As per information received from States/ UTs, 762 PACS have been identified/ selected by 10 States/ UTs to provide O&M services at the Panchayat/ Village level. Convergence of PM-KUSUM at PACS level : Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms. Convergence of PM Surya Ghar &ndash; Muft Bijli Yojana (PMSG&ndash;MBY) at the Cooperative Societies level: The initiative seeks to accelerate the adoption of clean and low-cost rooftop solar energy while leveraging the extensive grassroots presence of cooperative societies. 100 towns have been shortlisted for focused implementation of this initiative. Micro-ATMs to Bank Mitra Cooperative Societies for providing doorstep financial services: Dairy and Fisheries cooperative societies can be made Bank Mitras of DCCBs and StCBs. To ensure their ease of doing business, transparency and financial inclusion, Micro-ATMs are also being given to these Bank Mitra Co-operative Societies with support from NABARD to provide 'Door-step Financial Services'. To facilitate effective implementation of the initiative, an SOP has been launched on 19th September 2024 & 12,624 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Gujarat. Rupay Kisan Credit Card to Members of Milk Cooperatives: To expand the reach of DCCBs/ StCBs and to provide necessary liquidity to the members of Dairy Cooperative societies, Rupay Kisan Credit Cards (KCCs) are being distributed to the members of cooperatives for providing credit at comparatively lower interest rates and to enable them to carry out other financial transactions. To facilitate effective implementation of the initiative, an SOP has been launched on 19th September 2024 & 16,48,105 Rupay KCC have been distributed in the State of Gujarat. Formation of Fish Farmer Producer Organization (FFPO): To provide market linkage and processing facilities to fishermen, NCDC registered 70 FFPOs in the initial phase. In addition, the Department of Fisheries, Government of India, allocated the work of converting 1000 existing fisheries cooperative societies into FFPOs to the National Cooperative Development Corporation. National Cooperative Development Corporation has identified 1000 Primary Fisheries Cooperatives Societies to strengthen as FFPOs, with an approved outlay of Rs 280.65 crore. A business plan for the selected societies is being prepared by the CBBOs. NCDC has disbursed ₹105 crore to FFPOs/CBBOs under the scheme. White Revolution 2.0 : The Ministry of Cooperation has launched an initiative to usher Cooperative-led "White Revolution 2.0&rdquo; aimed at expanding cooperative coverage, employment generation and women's empowerment with an objective "To increase the milk procurement of dairy cooperatives by 50% from the present level over next five years by providing market access to dairy farmers in uncovered areas and increasing the share of dairy cooperatives in organised sector." The SOP for White Revolution 2.0 was launched on 19.09.2024 by Hon’ble Home & Cooperation Minister in the presence of Hon’ble Minister of Fisheries, Animal Husbandry and Dairying. On 25.12.2024, the Hon’ble Home & Cooperation Minister, in the presence of the Hon’ble Minister of Fisheries, Animal Husbandry and Dairying, inaugurated 6,600 newly set up Dairy Cooperative Societies. So far, 21,768 DCSs have been registered in 31 states/UTs. Atmanirbharta Abhiyan : Ministry of Cooperation has launched the initiative to incentivize production of pulses (tur, masur and urad) to reduce dependency on imports, and production of maize to be used for production of ethanol for meeting the goal of Ethanol Blending Programme (EBP) through National Cooperative Consumer Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED). Both have developed their own web portal, i.e., e-Samyukti and e-Samridhi, respectively, for registration of farmers through cooperatives. Both have assured pre-registered farmers of tur, urad, masur, and maize to procure 100% of their produce at the Minimum Support Price (MSP). However, if market prices exceed the MSP, farmers are free to sell their produce in the open market. A total of 42,87,484 farmers have already registered on the e-Samyukti portal of NCCF. Similarly, 13,90,862 farmers have registered themselves on the e-Samridhi portal of NAFED. Strengthening the Cooperative Banks Urban Cooperative Banks (UCBs) have been allowed to open new branches to expand their business: UCBs can now open new branches up to 15% (maximum 10 branches) of the existing number of branches in the previous financial year without prior approval of the RBI. UCBs have been allowed by the RBI to offer doorstep services to their customers: Doorstep banking facility can now be provided by UCBs. Account holders of these banks can now avail various banking facilities at home, such as cash withdrawal, cash deposit, KYC, demand draft, and life certificate for pensioners, etc. Notification of Scheduling norms for including Urban Cooperative Banks: UCBs that are in compliance with the Eligibility Criteria for Business Authorisation and have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to be included in Schedule II of the Reserve Bank of India Act, 1934, and get 'Scheduled' status. A Nodal Officer designated in RBI for regular interaction with UCBs: To meet the long-pending demand of the cooperative sector for closer coordination and focused interaction, RBI has notified a nodal officer. Relief for Urban Cooperative Societies (UCBs) by reducing PSL target from 75% to 60%: The Reserve Bank of India has provided relief to Urban Co-operative Banks (UCBs) by reducing the Priority Sector Lending (PSL) target from the earlier level of 75 per cent to 60 per cent. This relaxation has eased compliance pressures on UCBs and provided them with greater operational flexibility in managing their lending portfolios. Housing loan limit for Urban Cooperative Banks increased from 10% to 25%: Housing loan limit for members of Urban Cooperative Banks has been increased from 10% of assets to 25% (up to Rs 3 crore) of their total loans & advances. Relief in sub-limit of 12% sub-limit (weaker sections) by withdrawing of target of ₹ 2 lakh for women loan repayment: Removal of the target of ₹2 lakh for women borrowers under the 12% sub-limit for weaker sections simplifies PSL compliance and provides UCBs greater operational freedom in meeting PSL obligations. Relief to Urban Cooperative Institutions by increasing 50% loan limit from ₹ 1 crore to ₹ 3 crore: The loan and advances exposure limit for Urban Cooperative Banks (UCBs) at 50% of loans and advances has been increased from ₹1 crore to ₹3 crore, which helps them meet the higher credit demands of individual borrowers, supports business growth and improves their competitiveness in the retail and SME lending segments. Monetary ceiling for Gold Loan has been removed by RBI: RBI has removed the monetary ceiling from Rs. 2 lakhs for cooperative Banks at par with Commercial Banks. Umbrella Organization for Urban Cooperative Banks: National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) has been established on the approval of the RBI as an Umbrella Organization (UO) for the UCB sector, which is providing necessary IT infrastructure and operational support to around 1,500 UCBs. It has launched various services like Digi Loan and Digi Pay. RBI extended the glide path for Security Receipts from FY 2025-26 to FY 2027-28: RBI, vide circular dated 24.02.2025, has provided an additional two years for provisioning of non-performing assets through Asset Reconstruction Company for better management of capital and liquidity in urban co-operative banks so that these banks can minimize the losses on stressed assets. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like Commercial Banks: Co-operative banks, through board-approved policies, can now provide the process for settlement with borrowers, along with technical write-off. Higher Housing Loan Limits: Reserve Bank of India has increased the individual housing loan limit for rural co-operative banks by two and a half times to Rs. 75 lakh and enabled them to lend to real estate up to 5% of total exposure. License fee reduced for Cooperative Banks for AePS: License fee for onboarding Cooperative Banks to ‘Aadhaar Enabled Payment System’ (AePS) has been reduced by linking it to the number of transactions. Cooperative financial institutions are now to get the facility free of cost for the first three months of the pre-production phase. With this, members of onboarded Banks are now able to get the facility of banking at their home through biometrics. UIDAI on 01.08.2025 has introduced a new framework for onboarding of Cooperative Banks on the Aadhaar Enabled Payment System (AePS) . Now, only StCBs are required to onboard as Authentication User Agencies (AUA)/eKYC User Agencies (KUA); DCCBs will be allowed to use it through State Cooperative Bank as sub AUA/KUA. Non-scheduled UCBs, StCBs, and DCCBs notified as Member Lending Institutions (MLIs) in the CGTMSE Scheme to increase the share of cooperatives in lending: Cooperative banks are now able to take advantage of risk coverage up to 85 percent on the loans given. Also, cooperative sector enterprises are able to get collateral-free loans from cooperative banks now. CGTMSE rationalized the eligibility criteria from 5% Gross NPA or less to 7% Gross NPA or less for registration of Cooperative Banks as Member Lending Institutions (MLIs) under the Scheme. Banking Regulation Act is amended by the Government to make the term of the Board of Directors of Cooperative Banks as per the constitution (maximum 10 consecutive years). Limit for Agricultural Cooperative Societies (Dairy) under Priority Sector Guidelines increased from ₹5 crore to ₹10 crore: RBI has increased the priority sector lending limit for Agricultural Cooperative Societies (Dairy) from ₹5 crore to ₹10 crore vide Master Direction dated 24.03.2025. This move enables banks to provide more credit support to Agricultural Cooperative Societies (Dairy), thereby strengthening agricultural infrastructure and boosting rural credit flow. Sahakar Sarathi (Shared Service Entity): Sahakar Sarathi (Shared Service Entity) Private Limited has been established after approval of the RBI to provide technological services to Rural Cooperative Banks (RCBs) and their strengthening. This has launched 13 services for the Rural Cooperative Banking Sector. RBI vide its Notification dated 07.10.2025, has included rural cooperative banks in its Integrated Ombudsman Scheme . This will bring more transparency and accountability to the functions of rural cooperative banks. RBI vide Master Direction dated 04.12 2025, has allowed State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) to open new branches (maximum 10) through an automatic route . StCBs & DCCBs, subject to eligibility, will now be able to open new branches without delay and can expand their business. RBI vide Master Direction dated 28.11.2025, has granted relaxation to the Rural and Urban cooperative banks in financial norms for providing modern banking services . The previous requirements of Gross NPA being less than 7% and Net NPA not exceeding 3%, and the net profit criterion have been removed. Now the cooperative banks can easily provide modern banking services to their customers. RBI vide Master Direction dated 04.12.2025, has issued Eligibility Criteria norms for Business Authorisation (ECBA), which will supersede the previous FSWM provisions . The clause regarding no penalties in the last two years has been removed from these norms. Now the Cooperative Banks will be able to easily open new branches and expand their business. RBI vide letter dated 07.01.2026 has issued clarification in reference to Section 20 of the BR Act, due to which the Directors of Rural Cooperative Banks and their related Cooperative Societies are now eligible to avail loans from their concerned State Cooperative Banks & District Central Cooperative Banks, subject to stipulated conditions. RBI vide Notification dated 19.01.2026 has included National Cooperative Development Corporation (NCDC) as an eligible entity under the on-lending provisions of the PSL framework . Now the loan extended by the Banks to NCDC for on-lending to cooperative societies for purposes like Agriculture, Housing, Social Infrastructure, etc., will fall under the PSL category. RBI has granted relaxation to specified borrowers like IFFCO to borrow more than 50% of their working capital requirements (incremental funds) from the banks. The Committee of Secretaries, chaired by the Cabinet Secretary, has recommended the inclusion of Cooperative Banks as participant institutions under various schemes of the Government of India. Various Ministries/Departments, like the Department of Animal Husbandry and Dairying has also revised their scheme guidelines to include cooperative banks. With a view to onboarding co-operative banks as Corporate Agents for undertaking insurance business , the Ministry of Cooperation has requested all States/Union Territories and co-operative banks to associate as Corporate Agents of the IFFCO joint venture company. With a view to mitigating cyber fraud and ensuring prompt reporting and response, the Ministry of Cooperation has requested all States/Union Territories and co-operative banks to onboard the I4C and NCRP portals. More than 600 cooperative banks have onboarded on I4C. A Task Force has been constituted under NABARD , in accordance with the mandate of the National Cooperation Policy, 2025, to provide necessary inputs for policy formulation and to address issues and challenges faced by the Rural Co-operative Banking sector. The Ministry has constituted a Task Force under NAFCUB on ‘Transformation of Urban Cooperative Banks and Cooperative Credit Societies’ . The task force has submitted three reports. On the request of the Ministry, NABARD has submitted a report on Reforms, Restructuring, and innovation in Agriculture and Rural Development Banks (ARDBs). The Ministry has completed a detailed study through IRMA for National Cooperative Agriculture & Rural Development Banks' Federation Ltd. (NAFCARD), resulting in an approved Action Plan that guides lending expansion, promotes non-farm sector activities, and strengthens cooperative governance. The Ministry has completed a strategic study to elevate NAFSCOB’s role in Amrit Kaal (2022&ndash;2047). It outlines reforms for cooperative credit, digital integration, financial service diversification, and institutional strengthening. With emphasis on governance, state-level capacity building, and inclusive outreach, the roadmap positions NAFSCOB to lead cooperative banking and drive sustainable rural development across India. C. Relief to Cooperative Societies in the Income Tax Act Surcharge reduced from 12% to 7% for co-operative societies having income between Rs. 1 to 10 Cr.: This will reduce the burden of Income Tax on Cooperative Societies, and more capital will be available with them to work for the benefit of their members. MAT reduced for cooperatives from 18.5% to 15%: With this provision, now there is parity between Cooperative Societies and Companies in this regard. Relief in cash transactions under section 269ST of the Income Tax Act: To remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act, Government has issued a clarification that cash transaction of less than Rs. 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and will not be charged with income tax penalty. Tax cut for new manufacturing Cooperative societies: The Government has decided that a flat lower tax rate of 15% will be charged, compared to an earlier rate of up to 30% plus surcharge, for new cooperatives commencing manufacturing activities by March 31, 2024. This will encourage the formation of new cooperative societies in the manufacturing sector. Increase in limit of Cash Deposits and Payments by PACS and PCARDBs: The Government has enhanced the limit for Cash Deposits and Payments by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) from Rs. 20,000 to Rs. 2 lakh per member. This provision will facilitate their activities, increase the business, and benefit members of their societies. Increase in limit of Loan and Loan Repayments in Cash by PACS and PCARDBs: The Government has enhanced the limit for Loan and Loan Repayments in Cash by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) from Rs. 20,000 to Rs. 2 lakh per member. This provision will facilitate their activities, increase the business, and benefit members of their societies. <