Reserve Bank of India Central Board Director and Sahakar Bharati Co-Founder Member Satish Marathe has unveiled the Vision Document for Urban Co-operative Banks for 2025–2030 and beyond. The vision aims “to be a trusted, technology-driven, member-centric urban co-operative bank committed to inclusive growth, financial empowerment, and sustainable community development.”
The mission of Urban Co-operative Banks, as outlined in the document, includes providing modern, affordable, and ethical banking solutions to members and customers, promoting thrift, self-help, and co-operation among members, leveraging digital technologies for efficient, transparent, and secure banking operations, strengthening financial inclusion especially for small entrepreneurs, salaried persons, and micro-enterprises, and building a strong, skilled, and motivated workforce aligned with co-operative values.
Core values highlighted in the document emphasize integrity, member-centricity, co-operation, innovation, social responsibility, and prudence. Every decision and initiative is aimed at benefitting members while maintaining ethical and sustainable business practices.
For strategic objectives between 2025 and 2030, the document stresses business growth and diversification, targeting annual growth of 12–15%, diversifying loan portfolios across MSMEs, housing, services, and retail sectors, and selectively expanding branches in urban and semi-urban areas.
Digital transformation is a key focus, with plans to introduce fully integrated Core Banking Systems, mobile and internet banking, UPI, NEFT/RTGS, and digital lending facilities. The banks will also establish robust cyber-security frameworks, data governance protocols, and explore FinTech partnerships for customer convenience and efficiency.
To strengthen financial resilience, the Vision Document calls for maintaining capital adequacy ratios above regulatory norms, strengthening internal controls, risk management, and compliance systems, and adopting board-approved policies on audit, investment, lending, and NPA management. Transparency will be enhanced through timely disclosures and member communication.
On capital planning, the banks will explore multiple instruments permitted under regulatory norms, including share capital mobilization drives, long-term deposits, Tier-II bonds, and subordinated debt.
Dedicated reserves will be created for technology induction and upgradation, as well as for takeovers, mergers, or amalgamations, ensuring sustainable expansion without affecting liquidity or profitability. Budgeting for capital and revenue expenditure will be strictly disciplined with annual board-approved cost-benefit evaluations.
Human resource development will include capacity-building programs, performance-linked incentives aligned with co-operative principles, and promotion of young leadership and gender diversity in management and board positions.
Member and customer engagement will be strengthened through financial literacy programs, regular interaction sessions, and improved grievance redressal mechanisms. Social and environmental responsibility initiatives include green banking, community development in education, health, and livelihood, and alignment with Sustainable Development Goals.
The long-term goals for 2030 and beyond include becoming a leading multi-service urban co-operative bank with a business mix at least five times the present scale, operating a digital-first model with over 80% of transactions through alternate channels, achieving zero fraud and minimal NPAs, and being recognized as a benchmark for governance, innovation, and member service.
The implementation and monitoring framework will include quarterly reviews by a Strategic Plan Committee, annual action plans derived from the Vision Document, key performance indicators for each department, and member communication reports to ensure transparency and engagement.
In conclusion, the Vision Document lays out a roadmap for transforming Urban Co-operative Banks into modern, resilient, and community-oriented institutions, combining co-operative values with digital innovation, capital adequacy, and prudent financial management to contribute to inclusive urban growth and strengthen the co-operative movement in India.
Failure of UCBs is purely due to Regulatory Failures and RBI is squarely responsible for this, which costs the Depositors dearly. DICGC cover of Rs 5 lakhs is a pittance.