By Jyotindra Mehta, Chairman, NUCFDC
Marking five years of transformative governance in the cooperative sector, the Ministry of Cooperation has ushered in an era of strength, digitization, and financial inclusion for Urban Cooperative Banks (UCBs), making them more capable, modern, and competitive.
Under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi and the dynamic guidance of Hon’ble Union Home & Cooperation Minister Shri Amit Shah, the last five years have been celebrated as “Sahkar Se Samriddhi Ke 5 Swarnim Varsh”, Five Golden Years of Prosperity through Cooperation.
Biggest Employment Drive Launched Through Co-op Sector
The reforms have positioned the cooperative sector as a major engine for employment and grassroots entrepreneurship.
- Technology & Infrastructure Support: The newly RBI-approved Umbrella Organisation, NUCDFC, is now providing technology, infrastructure, and operational support to nearly 1,450 UCBs across India, creating thousands of skilled jobs in banking, IT, and compliance.
- Digital Expansion: Initiatives like Sahakar CBS, DigiPay, and DigiLoan are enabling paperless lending, digital payments, and modern core banking, directly supporting small businesses, kirana stores, dairy, and agriculture at the local level.
- New Service Verticals: UCBs are now entering insurance as Corporate Agents, expanding participation in government schemes, and offering collateral-free loans, opening new livelihood and service opportunities across urban and rural India.
- Skilled Workforce: The establishment of Tribhuvan Sahkari University is building skilled human resources specifically for the cooperative sector, ensuring a future-ready workforce.
UCBs to Achieve World-Class Compliance
To align UCBs with global banking standards, the Ministry has rolled out a comprehensive compliance and security roadmap.
- World-Class Digital Infrastructure: NUCDFC is deploying solutions such as Sahakar Compliance Monitoring, Risk-Based Internal Audit, Cyber Risk Insurance, and Virtual CISO to bring UCBs at par with scheduled commercial banks.
- Enhanced Cyber Security: More than 900 cooperative banks are now connected to I4C and NCRP for real-time cyber fraud reporting and stronger customer protection.
- Easier Credit Access: By becoming a CGTMSE Member Lending Institution (MLI), non-scheduled UCBs can now provide collateral-free loans with up to 85% credit guarantee, improving credit flow while maintaining robust risk frameworks.
- National Cooperative Policy-2025: A new comprehensive roadmap has been introduced for the holistic and sustainable development of the entire cooperative sector.
A dedicated Task Force has also prepared a blueprint for the modernization, transformation, and sector-specific reforms of UCBs, ensuring they meet future challenges with resilience.
Amit Shah Has Changed the Game
Under Shri Amit Shah’s leadership as the first Union Minister of Cooperation, the sector has witnessed unprecedented growth between FY 2021 and FY 2025:
- Reserves up 60%
- Deposits up 11%
- Loans up 19%
- Total Business up 14%
- Net Profit up 95%
- Return on Assets up 72%
- NNPA reduced from 5.1% to 0.7%
“From digital onboarding and AePS services to simplified licensing, the reforms have made UCBs stronger, safer, and more accessible to the common citizen,” a Ministry spokesperson stated. “Shri Amit Shah has changed the game by bringing transparency, technology, and trust to the heart of cooperative banking.”
With “Sashakt Shahri Sahkari Bank, Sashakt Bharat” as the guiding principle, these five golden years have laid the foundation for a resilient, inclusive, and employment-generating cooperative economy.
