Gujarat to deploy 12,000+ micro-ATMs across 14,330 gram panchayats for last-mile banking
Synopsis
Gujarat is rolling out more than 12,000 micro-ATMs across every gram panchayat in the state while converting PACS into one-stop service hubs — a structural push to bring banking, medicines, and 75-plus government services to the village doorstep. The ₹1,539 crore interest subvention and zero-percent loans for timely repayers add a credit dimension that could reshape rural agricultural finance in the state.
Key Takeaways
Gujarat is expanding a network of more than 12,000 micro-ATMs across 14,330 gram panchayats for last-mile banking.
PACS are being upgraded as Common Service Centres and Jan Aushadhi Kendras to deliver over 75 government services in villages.
36 lakh animal rearers have been issued RuPay debit cards as part of the financial inclusion drive.
The Interest Subvention Scheme outlay has been raised from ₹1,200 crore to ₹1,539 crore ; timely repayers qualify for 0% interest on loans up to ₹3 lakh . ₹60 crore earmarked to set up bio-CNG plants in milk unions, modelled on Banas Dairy's Banaskantha initiative.
Cooperative exports to be channelled through National Cooperative Export Limited and National Cooperative Organics Limited .
Gujarat's Agriculture Minister Jitu Vaghani on Saturday, 3 May 2025, announced that the state government will expand a network of more than 12,000 micro-ATMs across 14,330 gram panchayats and develop Primary Agricultural Credit Societies (PACS) as Common Service Centres to strengthen last-mile banking and deliver over 75 government services directly within villages. The announcement was made at the Vibrant Gujarat Regional Conference (South Gujarat Zone) in Surat.
Micro-ATM Network and PACS Upgrade
Addressing the second day of the conference, Vaghani said that PACS are being simultaneously developed as Jan Aushadhi Kendras, making essential medicines and government services accessible at the village level.
Point of View
Not network size. Past rural banking rollouts across India have struggled with device downtime, connectivity gaps, and low transaction volumes in remote areas. The zero-percent interest loan incentive for timely repayment is a smart behavioural nudge, but its impact depends on whether credit actually reaches small and marginal farmers or is captured by better-connected borrowers. The bio-CNG and cooperative export push signals a deliberate pivot from subsidy-led support to income-generation — structurally sounder, but requiring sustained institutional capacity that Gujarat's cooperative sector has not uniformly demonstrated.
NationPress
5 Jul 2026
Frequently Asked Questions
Why is Gujarat expanding micro-ATMs across gram panchayats?
Gujarat is deploying more than 12,000 micro-ATMs across 14,330 gram panchayats to extend last-mile banking access to rural residents who lack proximity to conventional bank branches. The initiative is part of a broader financial inclusion drive that also includes RuPay debit cards for 36 lakh animal rearers.
What services will upgraded PACS offer?
PACS being developed as Common Service Centres and Jan Aushadhi Kendras will deliver over 75 government services and provide access to essential medicines directly within villages, reducing the need for residents to travel to urban centres.
How has Gujarat changed its Interest Subvention Scheme?
The provision under the Interest Subvention Scheme has been increased from ₹1,200 crore to ₹1,539 crore to ensure wider and more affordable credit access for farmers. Farmers who repay loans on time qualify for loans up to ₹3 lakh at zero per cent interest.
What is the Banas Dairy bio-CNG model?
Banas Dairy's three bio-CNG plants in Banaskantha procure 240 metric tonnes of dung daily from animal rearers at ₹1 per kilogram, generating income for farmers while producing bio-CNG and organic fertiliser. Gujarat has allocated ₹60 crore to replicate this model across milk unions statewide.
How will Gujarat's cooperatives access international markets?
Cooperative products will be marketed globally through National Cooperative Export Limited and National Cooperative Organics Limited, which will support organic farmers with branding, certification, and marketing under a 'local to global' strategy.
