Parliament has passed the National Co-operative Development Corporation (NCDC) (Amendment) Bill, 2026, aimed at boosting financial support and development for India’s cooperative sector. The Rajya Sabha approved the bill on August 12, 2026, after the Lok Sabha passed it earlier.
The amendment broadens NCDC’s mandate, allowing it to provide loans and grants directly to cooperative societies and other entities engaged in cooperative development, not just state governments. It also empowers NCDC to participate in the share capital of cooperatives and development entities, subject to Central Government approval.
Key provisions include expanding the definition of “foodstuffs” to cover processed and notified food items, removing geographical restrictions on industrial goods financing, and enabling state governments to extend NCDC funding to any entity involved in cooperative development. The bill also introduces new sections granting NCDC incidental powers for smoother operations and enabling credit information sharing with the Central Government, RBI, and banks.
Minister of State for Cooperation Murlidhar Mohol clarified that the amendment does not involve additional budgetary financial assistance from the government. The NCDC, established in 1963 under the Ministry of Cooperation, plays a crucial role in financing cooperative projects across agriculture, rural development, and allied sectors.
FAQs [Frequently Asked Questions]
Q1: What does the NCDC Amendment Bill 2026 allow?
A: It allows NCDC to provide loans, grants, and equity directly to cooperatives and entities engaged in cooperative development, with Central Government approval.
Q2: Does the bill involve additional government funding?
A: No, the bill does not include provisions for additional budgetary financial assistance; it only expands NCDC’s operational and financial scope.
Q3: How does the bill expand NCDC’s scope?
A: It removes geographical restrictions on industrial goods, includes processed food in “foodstuffs,” and allows state governments to extend NCDC funding to development entities.