Umbrella organization of Urban Cooperative Banks
Umbrella organization of Urban Cooperative Banks
A need was felt to establish an organization to resolve the difficulties being faced by the Urban Cooperative Banks (UCBs). UCBs are operating in a fragmented and uncoordinated environment, hindering their growth, stability and competitiveness. The lack of regulatory clarity, operational inefficiencies and limited access to resources and expertise left many UCBs vulnerable to financial instability, poor governance and market pressures.
An Umbrella Organization named National Urban Co-operative Finance and Development Corporation (NUCFDC) has been established to address the difficulties of Urban Cooperative Banks (UCBs). NUCFDC is envisaged to provide following types of fund-based support and non fund-based services to urban cooperative banks (UCBs) which are its shareholder-members.
(I) Fund based support:
(II) Non fund based services:
NUCFDC has obtained registration from RBI on 8th February 2024 after mobilizing paid up capital of Rs117.95 crore. As per RBI approval the UO shall act as Self-Regulatory Organization whose functions /activities shall be as prescribed by RBI. However, the NUCFDC is required to attain the paid-up capital of Rs. 300 crore within one year from the date of registration by RBI, i.e up to 7th February, 2025.
This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Rajya Sabha.