In a major step towards strengthening the cooperative banking sector, the government has announced plans to establish a separate ‘Cooperative Bank of India’ to function as a clearing house for Urban Cooperative Banks (UCBs), State Cooperative Banks (SCBs), and District Central Cooperative Banks (DCCBs).
The initiative will be executed through the National Urban Cooperative Finance and Development Corporation (NUCFDC) and is expected to be completed within the next two years.
Speaking at an event in Pune, Union Home and Cooperation Minister Amit Shah emphasized the government’s commitment to modernizing and fortifying cooperative banks.
He revealed that a crucial meeting was concluded two days ago, during which it was announced that the target of Rs 300 crore in share capital for NUCFDC had been achieved.
This capital infusion will provide financial assistance, technological upgrades, and infrastructural support to cooperative banks, ensuring their stability and efficient functioning.
With this initiative, cooperative banks across the country will receive technical support, Core Banking Solution (CBS) adoption, and financial aid to enhance their services.
The move is expected to boost financial inclusion, enhance operational efficiency, and provide a strong support system for cooperative banks facing financial distress.
