Financial Inclusion in Cooperative Banks in India

June 28, 2019 Admin 5

When we talk about the Banking Industry in India, we end-up thinking of our PSU Banks, Private Sector Banks & Major International Banks which have Indian Operations. But one segment which is always skipped from the list is the Co-operative Banks in the country. Today central co-operative banks are the biggest in terms of number of banks, the number is a whooping 370 and these are present across the length and breadth of the country. Since the target audience of these banks is the consumers residing in Rural and Semi Urban areas, therefore most of the policies and procedures are still dependent on Manual processes which makes the customer journey elongated as compared to PSU & Private Sector Banks in India.

With the wave of Digitization which is currently setting its foot-prints in the entire country. It is time for CO-operative Banks to start this journey, many of them have already opted for ‘Core Banking Systems’ which is the back-bone of digitization for any bank and are now completely functional on them others are still evaluating as to how to manage the change in the processes. The Co-operative banks have experienced a blessing in disguise with the fact that where major banks are now upgrading their CBS for inclusion of Fintech Services like Bank Statement Analysis, Financial Statement Analysis, Online KYCs, GSTR Analysis, Digital Account Opening, ATM, POS Capability & ITR Analysis etc, few of co-operative banks are trying to adopt CBS which is integrated with different Fintech services in order to widen up their function domain. The Inclusion of these services will help in delivering the Financial Inclusion at the last mile of the customer hierarchy in the country.


The period of Financial Inclusion in the Rural and Semi Urban areas of the country will surely give a different shape to the Go-to-Market plans of the fintech companies which are already working with PSU and Private Sector Banks.

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