While addressing a press conference at the Constitution Club on Thursday, Jyotindra Mehta, Chairman of the National Urban Cooperative Finance and Development Corporation (NUCFDC), said that the umbrella organization being formed for Urban Cooperative Banks (UCBs) will help them avoid penalties imposed by the Reserve Bank of India (RBI) for non-compliance.
It is well known that several cooperative banks currently face penalties due to gaps in compliance and reporting standards.
“With the establishment of the umbrella organization, UCBs will get access to professional consultancy, technical support, and timely guidance to ensure full adherence to RBI norms. Through expert advisory and systematic monitoring, we aim to eliminate instances of non-compliance, thereby helping banks achieve a zero-penalty status,” Mehta said.
He further added that the umbrella organization will serve as a one-stop support mechanism to strengthen governance, improve risk management, and enhance the overall efficiency of Urban Cooperative Banks.
Mehta expressed confidence that this initiative will not only improve the regulatory standing of UCBs but also restore greater trust and stability within the cooperative banking sector.
