Sahakar Sarathi Launched to Modernise Rural Cooperative Banks

The Government of India has operationalised Sahakar Sarathi, a Shared Service Entity, to strengthen and modernise Rural Cooperative Banks across the country. The initiative aims to enable RCBs to deliver standardised, technology-driven banking services comparable to other regulated banking institutions.

Establishment and Regulatory Approval

Sahakar Sarathi was established following approval from the Reserve Bank of India and was formally registered on 21 July 2025. The entity has been created to act as a common technology and service backbone for Rural Cooperative Banks, addressing long-standing gaps in digital and operational capabilities.

Capital Structure and Shareholding

The Shared Service Entity has an authorised capital of ₹1,000 crore. Its shareholding structure has been fixed equally among three stakeholders. NABARD, the National Cooperative Development Corporation and participating Rural Cooperative Banks each hold a 33.33 per cent stake, ensuring balanced ownership and cooperative control.

Technology and Digital Services Offered

Sahakar Sarathi provides shared technological infrastructure to RCBs. Its services include common and modern Core Banking Solutions, digital payment platforms such as AePS and UPI, and related digital channels. It also supports cybersecurity frameworks, IT governance standards, domain migration such as bank.in, and capacity-building through standard operating procedures and training programmes.

What to Note for Exams?

• Sahakar Sarathi is a Shared Service Entity for Rural Cooperative Banks.
• It was registered on 21 July 2025 after RBI approval.
• Authorised capital is ₹1,000 crore with equal shareholding.
• Key services include CBS, UPI, AePS and cybersecurity support.

Impact on Cooperative Banking Sector

Through shared digital infrastructure and standardised processes, Sahakar Sarathi is expected to enhance customer access, improve operational efficiency and support adoption of contemporary financial technologies by Rural Cooperative Banks. The initiative was outlined by Union Minister for Home and Cooperation Amit Shah in a written reply in the Lok Sabha, highlighting the government’s focus on strengthening the cooperative banking ecosystem.