National Cooperative Development Corporation (Amendment) Act, 2026

• Parent Law: The amendment modifies the National Cooperative Development Corporation Act, 1962.
• NCDC: The National Cooperative Development Corporation (NCDC) was established in 1963 as a statutory corporation.
• Administrative Ministry: NCDC functions under the Ministry of Cooperation.
• Objective: The amendment seeks to strengthen NCDC’s role in financing, promoting and developing the cooperative sector.

Key Provisions

• Co-operative Development: Includes planning, promotion and financing of programmes for cooperative societies, either directly or through an intermediary entity.
• Direct Financial Assistance: NCDC can provide loans and grants directly to cooperative societies and entities engaged in cooperative development.
• Share Capital: With Central Government approval, NCDC can participate in the share capital of cooperative societies and entities engaged in cooperative development.
• Food Sector: The scope of food-related activities includes processed food, other edible products and other food items notified by the Central Government.
• Industrial Goods: NCDC’s activities relating to industrial goods have been expanded.
• Section 9A: Provides powers to undertake activities necessary or incidental to the exercise of NCDC’s powers and performance of its functions.
• Section 13A: Enables NCDC to collect or furnish credit information from/to the Central Government, RBI, banking companies and other notified financial institutions.
• NCDC Board: The Board determines whether an entity is engaged in cooperative development.

Prelims Practice Questions

Q1. With reference to the National Cooperative Development Corporation (Amendment) Act, 2026, consider the following statements:

1. NCDC can provide loans and grants directly to cooperative societies.
2. NCDC can participate in the share capital of cooperative societies with the approval of the Central Government.
3. The amendment empowers NCDC to collect or furnish credit information.
4. NCDC is a constitutional body established under the Constitution of India.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (b) 1, 2 and 3 only

Explanation: NCDC is a statutory corporation, not a constitutional body.