Jyotindra Mehta, Chairman of the National Urban Cooperative Finance and Development Corporation (NUCFDC), said that the Umbrella Organization (UO) remains deeply committed to supporting smaller Urban Cooperative Banks (UCBs), which often lack the resources to counter high-level cybersecurity threats.
Explaining the structure of India’s cooperative banking ecosystem, Mehta said that Tier-1 UCBs are those with deposits below Rs 100 crore, mostly small, community-driven banks with long-standing member loyalty. Tier-2 banks operate below Rs 1,000 crore, while Tier-3 banks have deposits exceeding Rs 1,000 crore.
“Across India, from Manipur to Jammu & Kashmir, you’ll find UCBs serving people in the truest sense of cooperative spirit,” he noted. Drawing a parallel, Mehta recalled how the Reserve Bank of India had advised NAFCUB about 15 years ago to set up an institution similar to the Rabo Bank model in the Netherlands, an umbrella organization that could provide strength, guidance, and stability to cooperatives.
“RBI had given us a Rs 300-crore target to begin with. Today, that goal has been achieved. The NUCFDC has become more than just a support institution, it’s a kind of fintech platform that benefits both small and large UCBs,” Mehta said.
He emphasized that NUCFDC has already launched multiple products and services that include cybersecurity solutions, business development ideas, crisis management systems, and self-regulatory frameworks. “It’s truly India’s umbrella for the cooperative banking sector,” he added.
Highlighting the resilience of India’s cooperative movement, Mehta said that UCBs have survived and grown for over a century through community trust and local management. “Now, with NUCFDC leading the way, the planning for the next 100 years has already begun,” he declared. “Business expansion, innovation, and digital empowerment, all can be achieved under this umbrella.”
Speaking on future plans, Mehta said the Umbrella Organization will spearhead modernization initiatives that will transform UCB operations through technology, digital security, and shared services.
Prabhat, CEO of NUCFDC, added that the coming century for India’s UCBs would be defined by digital transformation. “The next 100 years will see a shift towards advanced digital platforms, streamlined loan processes, and centralized payment switches. Our goal is to reduce the cost of UPI transactions and provide cooperative banks with services comparable to commercial banks,” he said.
Prabhat noted that NUCFDC aims to fulfill the vision of inclusive banking set by the Union Minister of Cooperation by ensuring that every cooperative, big or small, has equal access to technology, security, and growth opportunities under India’s own financial umbrella.
