This paper examines the structure, performance, and challenges of the cooperative banking system in Purba Medinipur, a predominantly agrarian and coastal district in West Bengal. Drawing upon secondary data from NABARD’s ‘Potential Linked Plan’ (PLPs), State Focus Papers, and official cooperative bank records, the study maps the district’s three-tier cooperative credit architecture—comprising Primary Agricultural Credit Societies (PACS), District Central Cooperative Banks (DCCBs), and the State Cooperative Bank. The analysis reveals that Purba Medinipur has a dense institutional network, including 763 PACS, 54 DCCB branches, and a significant presence of commercial and regional rural banks. Cooperative institutions demonstrate superior performance in Annual Credit Plan (ACP) achievement (89.26%) and recovery rates (88.92%) compared to commercial banks and RRBs, highlighting their pivotal role in rural credit delivery. However, persistent challenges such as low overall Credit–Deposit (CD) ratio (44%), governance deficiencies, and limited technological adoption constrain their full potential. The paper emphasizes the need for reforms in professional management, digitalisation of PACS, diversification into allied-sector financing, and stronger linkages with commercial banks and fintech platforms. Strengthening cooperatives in these dimensions is essential for enhancing rural financial inclusion and sustainable development in Purba Medinipur.