• Anam Abubakar Jalgaonkar
• Dr. Deepa Damodaran

Digital transformation has emerged as a significant driver of modernization in the Indian banking ecosystem, particularly within the co-operative banking sector. Although private and public sector banks have rapidly digitized their operations, co-operative banks—especially those situated in rural and semi-urban regions—have historically relied on conventional, paper-based, and manually intensive banking processes. The integration of digital banking tools such as Core Banking Solutions (CBS), AEPS, UPI, digital KYC, micro-ATMs, mobile banking, and automated loan management systems has allowed co-operative banks to improve accessibility, operational efficiency, transaction transparency, and customer convenience. This research explores the depth of digital adoption among co-operative banks and evaluates its direct and indirect influence on rural customers. Using a mixed methodological approach supported by secondary data analysis, field-level observations, and informal customer interactions, the study highlights major improvements in financial inclusion, service delivery speed, and customer satisfaction. At the same time, the research identifies challenges such as digital illiteracy, cybersecurity concerns, infrastructural constraints, trust issues, and demographic limitations among rural populations. The findings offer insights for policymakers, banking professionals, and co operative governance bodies to enhance digital outreach and improve customer experience.

Digital Banking, Co-operative Banks, Rural Banking, Financial Inclusion, UPI, AEPS, Digital Transformation, Rural Customers.

"DIGITAL TRANSFORMATION IN CO-OPERATIVE BANKS AND ITS IMPACT ON RURAL CUSTOMERS ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 12, page no.a309-a314, December-2025, Available :http://www.jetir.org/papers/JETIR2512042.pdf

"DIGITAL TRANSFORMATION IN CO-OPERATIVE BANKS AND ITS IMPACT ON RURAL CUSTOMERS ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 12, page no. ppa309-a314, December-2025, Available at : http://www.jetir.org/papers/JETIR2512042.pdf