The Gujarat government has taken a significant step to strengthen the state's rural financial infrastructure. In a key decision, the state cabinet has granted an in-principle approval for the establishment of nine new District Central Cooperative Banks (DCCBs). This move is set to improve credit flow to the agricultural sector and boost the rural economy.
Cabinet Gives Green Light for Financial Expansion
Chaired by Chief Minister Bhupendra Patel, the state cabinet met on Wednesday, January 1, 2026, and gave its formal nod for the creation of the new cooperative banking institutions. The announcement was made by the government's spokesperson and senior minister, Jitu Vaghani. According to an official release, this initiative aligns with a national resolve to expand the cooperative banking network in every district across the country.
Minister Vaghani highlighted that the push for this expansion originates from the commitment of Prime Minister Narendra Modi. Following this, Union Home and Cooperation Minister Amit Shah has spearheaded a special drive. As part of this concerted effort, the National Bank for Agriculture and Rural Development (NABARD) has approached the Union Ministry of Cooperation with a proposal to start new DCCBs in select districts, which notably includes nine from Gujarat.
Districts Set to Benefit from New Banks
The nine districts identified for the new District Central Cooperative Banks are spread across various regions of Gujarat. The approved locations are:
- Dahod
- Aravalli
- Tapi
- Chhota Udepur
- Devbhumi Dwarka
- Porbandar
- Anand
- Dang
- Navsari
This selection ensures that areas with significant agricultural and rural economic activity will gain dedicated financial institutions closer to the grassroots.
Next Steps and Expected Impact
With the in-principle approval from the state cabinet secured, the procedural journey for these banks now moves forward. The Gujarat government will formally submit a proposal to the Reserve Bank of India (RBI) through NABARD, seeking the final regulatory clearance necessary for the formation of the nine DCCBs.
The government's official statement underscores the primary objective behind this expansion: to make finance more accessible to farmers. By establishing local cooperative banks in these districts, the authorities aim to streamline agricultural credit, reduce dependency on informal lenders, and inject vitality into the rural economic ecosystem. This development is seen as a direct effort to empower the farming community and support allied rural industries.
The establishment of these banks is poised to create a more robust and inclusive financial network in Gujarat, directly addressing the credit needs at the district level and fostering sustainable economic growth in the state's hinterlands.
