Gandhinagar: Chief Minister Bhupendrabhai Patel today chaired the meeting of the state cabinet in the state capital, during which in-principle approval was granted for the formation of nine new District Central Cooperative Banks in Gujarat.

Addressing the media after the meeting, government spokesperson and Minister Jitubhai Vaghani said the decision aligns with the Centre’s push to strengthen the rural cooperative banking network across the country. He noted that Prime Minister Narendra Modi has emphasised expanding the reach of cooperative banks in rural areas, a vision being implemented through a special initiative of the Ministry of Cooperation under Union Minister Amit Shah.

As part of this initiative, the National Bank for Agriculture and Rural Development (NABARD) submitted an approach note to the Ministry of Cooperation proposing the formation of new district central cooperative banks in select districts across the country, including nine in Gujarat, Vaghani said.

He added that, following the directions of the Government of India, the Chief Minister granted in-principle approval in the cabinet meeting to establish these banks with the aim of improving access to credit for farmers and rural citizens. The move is expected to ease credit availability in remote areas and give a boost to the rural economy.

According to the minister, the new banks will be formed through the division of existing district central cooperative banks. Under the proposal, the Panchmahal bank will be divided to create a new bank in Dahod district; the Sabarkantha bank in Aravalli; the Surat bank in Tapi; the Vadodara bank in Chhota Udepur; the Jamnagar bank in Devbhoomi Dwarka; the Junagadh bank in Porbandar; the Kheda bank in Anand; and the Valsad bank in Dang and Navsari districts.

The state government will now forward a proposal to the Reserve Bank of India through NABARD and initiate the required legal process for the formation of the new banks, Vaghani said. DeshGujarat