NCDC Amendment Bill 2026: Wider Mandate and Direct Funding
Why in the news
In August 2026 a Bill to update the law on the apex cooperative financier was introduced in the Lok Sabha.
About the NCDC
| Aspect | Detail |
|---|---|
| Status | Statutory apex financial and developmental body |
| Origin | Set up in 1963 under the NCDC Act, 1962 |
| Ministry | Ministry of Cooperation (formed 2021; earlier Agriculture) |
| Seat | New Delhi |
It plans, promotes and finances cooperative programmes covering produce handling from production to trade.
- Finance: loans, grants and working capital.
- Infrastructure: processing, cold chains, godowns, marketing.
- Inclusion: weaker-section cooperatives, including women, SC/ST and smallholders.
Key features of the Bill
- Mandate widened to “for co-operative development”.
- Direct funding to non-cooperative agencies and statutory bodies that aid cooperatives.
- Share capital participation, needing Central Government approval.
- Broader foodstuffs definition; no geographic limit on industrial goods financing.
- New Sections 9A and 13A: incidental powers and credit information sharing with the Centre, RBI and banks.
Exam angle
- Nodal ministry: Ministry of Cooperation (2021).
- Parent law: NCDC Act, 1962.