In a renewed push to expand the cooperative banking network, NAFCUB has urged the Reserve Bank of India (RBI), during the Standing Advisory Committee meeting, to issue clear entry point norms for the establishment of new Urban Cooperative Banks (UCBs).
The demand aligns with the Ministry of Cooperation’s ambitious “One Town – One Bank” vision, a concept strongly supported by the Union Minister of Cooperation Amit Shah. NAFCUB has submitted its proposed guidelines to the RBI and is actively pursuing regulatory support to turn this vision into reality.
NAFCUB has specifically requested that the RBI formulate and publish comprehensive norms for licensing new UCBs. In the interim, it has urged the RBI to permit eligible credit societies that meet the necessary criteria to be granted banking licenses.
“If implemented, this will mark the beginning of a new era in the cooperative banking sector,” said a NAFCUB representative. “It will not only expand access to banking services but also strengthen the cooperative movement at the grassroots level.”
It is learnt that NAFCUB recently constituted a task force to identify eligible credit cooperatives that can be converted into cooperative banks. The task force has reportedly shortlisted 5–6 such societies and is believed to have submitted its report to the Union Ministry of Cooperation.
