Sahakar Sarathi Launched to Modernise Rural Cooperative Banks

Shared Service Entity to Drive Digital Transformation in RCBs

The Government of India has operationalised Sahakar Sarathi , a Shared Service Entity (SSE) , to strengthen and modernise Rural Cooperative Banks (RCBs) across the country. The initiative is designed to provide RCBs with a common technology backbone, enabling them to offer standardised and digital banking services on par with other regulated banks.

Establishment and Regulatory Approval
Sahakar Sarathi was set up after receiving approval from the Reserve Bank of India (RBI) and was formally registered on 21 July 2025 . The entity has been created to address long-standing challenges faced by cooperative banks, particularly in the areas of technology adoption, operational efficiency and regulatory compliance. By pooling resources and expertise, the SSE model reduces costs while ensuring uniform service standards.

Capital Structure and Ownership Model
The entity has an authorised capital of ₹1,000 crore . Its ownership structure reflects the cooperative ethos, with equal participation from key stakeholders. NABARD , the National Cooperative Development Corporation (NCDC) , and participating Rural Cooperative Banks each hold a 33.33% stake , ensuring shared control, accountability and sustainability.

Technology and Digital Services Portfolio
Sahakar Sarathi offers a wide range of shared digital services. These include modern Core Banking Solutions (CBS) , digital payment platforms such as UPI and Aadhaar-enabled Payment System (AePS) , and other customer-facing digital channels. The entity also supports cybersecurity frameworks , IT governance standards, domain migration (such as bank.in ), and structured capacity-building through standard operating procedures and staff training.

Impact on Cooperative Banking
By providing common digital infrastructure and standardised processes, Sahakar Sarathi is expected to enhance service delivery, expand financial inclusion and improve the operational resilience of RCBs. The initiative was highlighted by Union Minister for Home and Cooperation Amit Shah in a written reply to the Lok Sabha, underlining the government’s commitment to revitalising the cooperative banking ecosystem and aligning it with India’s digital financial architecture.

Exam-Focused Points

• 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 among NABARD, NCDC and RCBs.

• Key services include CBS, UPI, AePS and cybersecurity support .