Abstract : This study examined the diverse nature of rural credit cooperatives in India, analyzing their history, challenges, and new roles in the context of microfinance. The cooperative credit movement, beginning with the Cooperative Societies Act of 1904, has undergone distinct phases marked by legislative developments, government interventions, and evolving challenges. PACS are crucial components of the cooperative credit movement, the study explored challenges they encounter. The emphasis is placed on the need for revival through legal and institutional reforms. The study examines the emerging role of cooperatives in microfinance. The study highlights the pivotal role of National Bank for Agriculture and Rural Development (NABARD) in India's agricultural and rural development. NABARD's functions, including refinancing, institution building, and research promotion, make it a key player in promoting sustainable rural development. Study concludes that promoting financial inclusion, rural development, and equitable growth requires revitalizing rural credit cooperatives. The comprehensive approach suggested involves legal reforms, institutional strengthening, and innovative initiatives. NABARD's central role, complemented by the recommendations of the Vaidyanathan Committee, sets the stage for a resilient and self-reliant cooperative credit system, contributing significantly to the prosperity of rural India.