The National Urban Cooperative Finance and Development Corporation Ltd (NUCFDC), the umbrella organisation for India’s Urban Cooperative Banks, has entered into a strategic partnership with CSC e-Governance Services India Ltd (CSC SPV) to accelerate the digital transformation of the sector.
The Memorandum of Understanding, signed in Mumbai, marks a coordinated push to modernise urban cooperative banks through the adoption of secure, scalable and regulatory-compliant digital infrastructure.
Under the agreement, NUCFDC will facilitate the rollout of technology solutions across its member banks, while CSC SPV will provide the platforms, APIs and operational support. The implementation will advance in phases, beginning with the introduction of Aadhaar-based eKYC, eSign, digital signature certificates, DigiLocker integration, e-stamp services, secure cloud hosting, data centre management and cybersecurity frameworks.
These services are aimed at establishing a robust groundwork for compliance, transparency and digital readiness within UCBs that have traditionally relied on legacy systems and limited digital interfaces.
Subsequent phases will focus on consumer-facing and branch-level digital channels, including internet banking, mobile banking, kiosk-based services and digital communication tools. The effort seeks to create an integrated digital ecosystem that supports both frontline banking operations and backend regulatory processes.
A joint governance mechanism will supervise implementation and guide capacity building across the member institutions. The partnership also includes compliance support, grievance redressal mechanisms, data protection measures, and training programmes to ensure that adoption is both sustainable and aligned with regulatory norms.
The MoU was endorsed in the presence of NUCFDC CEO Prabhat Chaturvedi and CSC SPV Group President Bhagwan Patil. Speaking about the collaboration, Chaturvedi said the urban cooperative banking sector must leap into the digital era without losing its grassroots identity.
He remarked that the partnership equips banks with modern infrastructure to serve millions with greater trust, transparency and efficiency. He added that at a time when financial inclusion and credibility are crucial for sectoral growth, the collaboration places UCBs firmly on the path of resilience and modernisation.
Bhagwan Patil emphasised that CSC SPV’s digital backbone combined with NUCFDC’s institutional role would enable scalable, future-ready solutions for cooperative banks. He noted that the collaboration is designed to ensure that last-mile users experience banking services with the convenience common in mainstream digital banking. Patil described the initiative as an effort to reshape urban cooperative banking for a digital India, with benefits for both institutions and customers.
The partnership reflects the government’s broader agenda of strengthening cooperative institutions through professionalisation, technological adoption and regulatory alignment. NUCFDC, backed by the Ministry of Cooperation and working in consultation with the Reserve Bank of India, has a mandate to mobilise capital, build resilience and enhance public confidence in the urban cooperative banking framework. The organisation has been positioning itself as a facilitator of sector-wide reforms by promoting common standards, shared infrastructure and better governance mechanisms.
CSC SPV, created as a Special Purpose Vehicle under the Companies Act for implementing the Common Services Centre initiative, delivers a range of digital public and commercial services across India. It enables e-KYC, e-sign, DigiLocker, data centre solutions and various government-to-citizen and business-to-customer services. Its technology infrastructure and outreach are expected to help cooperative banks bridge digital gaps quickly and cost-effectively.
With this collaboration, stakeholders anticipate a transformation in how UCBs deliver services, comply with regulations, and compete in a rapidly digitising financial landscape. The initiative aligns with national priorities on inclusive growth, digital empowerment and strengthening people-centric banking institutions.
