NABARD strengthened Nagaland's cooperative credit structure in FY 2025-26 through Rs 147.38 crore total refinance support to Nagaland State Cooperative Bank and Nagaland Rural Bank, marking 207.68% growth. First-ever Direct Refinance Assistance of Rs 100 crore sanctioned to NStCB. Key reforms included computerization of 231 PACS, registration of 67 new Multipurpose PACS, and establishment of Business Diversification Cell enabling new products like home loans.

This development represents NABARD's targeted intervention to modernize Nagaland's cooperative banking infrastructure, addressing the northeastern state's unique agricultural credit challenges. The 207.68% growth in refinance support indicates aggressive expansion of rural credit access in a region historically underserved by formal banking. Computerization of 231 PACS aligns with the Ministry of Cooperation's 'Sahakar se Samriddhi' vision, enhancing transparency and reducing operational bottlenecks that plague cooperative societies. The establishment of 67 new MPACS in uncovered villages directly addresses last-mile connectivity for financial services, crucial for Nagaland's predominantly rural, tribal economy. The Business Diversification and Product Innovation Cell at NStCB marks a strategic shift from traditional crop loans to diversified products like home loans and salary accounts, reflecting NABARD's push for cooperative banks to compete with commercial banks. This initiative is particularly significant given Nagaland's low banking penetration and the cooperative sector's role as the primary formal credit source for small farmers. The refinance mechanism ensures liquidity support while the technological upgrades improve governance standards, addressing longstanding concerns about cooperative bank viability in the northeast.