Punjab becomes the first state in India to upgrade cooperative banks to Finacle 10 Core Banking System

Modernization of Cooperative Banking in Punjab Strengthens Rural Economy Latest News: Chandigarh: The Punjab government, under the dynamic leadership of Chief Minister Bhagwant Singh Mann, is making significant strides in modernizing cooperative banking services, setting a national benchmark for innovation, efficiency, and farmer-centric reforms.

In a historic achievement, Punjab has become the first state in the country to upgrade cooperative banks from Finacle 7 to the advanced Finacle 10 Core Banking Solution (CBS). The Central Cooperative Bank of S.A.S. Nagar and the Central Cooperative Bank of Ropar are the first to complete this transformation, aimed at delivering faster, safer, and more customer-friendly banking services.

This digital leap reflects Punjab’s strong commitment to strengthening the rural banking infrastructure through cutting-edge technology. It also showcases the vision of Chief Minister Bhagwant Singh Mann, whose focus on digital innovation and rural empowerment is driving reforms across sectors.

The Finacle 10 upgradation equips cooperative banks to provide enhanced customer service, faster transactions, improved data security, and greater operational efficiency. It marks a significant step towards transparent, secure, and inclusive rural banking. Plans are already underway to extend this upgradation to other cooperative banks in Punjab in a phased manner.

Alongside technological modernization, the government is also addressing financial performance. Chief Minister Mann has directed a focused drive to recover dues from defaulter account holders of cooperative banks. This step is essential to ensure that funds are available for disbursing loans to farmers and allied sectors.

The Chief Minister emphasized that loan defaults hinder financial assistance to deserving beneficiaries. Cooperative banks already offer a 3% interest rebate on timely repayment of crop loans. However, many farmers still delay repayment, resulting in higher interest costs and disqualification from future loans and other government-backed facilities.

These combined efforts—technological advancement and financial accountability—highlight the government’s commitment to creating a resilient, farmer-friendly cooperative banking system that supports the broader goal of rural economic growth.