Mehta bats for strong Umbrella at NAFCUB AGM

At the 49th Annual General Meeting of NAFCUB, NUCFDC President Jyotindra Mehta underscored the growing importance of a strong umbrella organization for the cooperative banking ecosystem. He said such an institution has the potential to empower smaller cooperative banks in states like Manipur, Sikkim, and Mizoram, enabling them to evolve into reputed institutions like Saraswat Bank and Cosmos Bank, often referred to as the “State Bank of India of the cooperative sector.”

“The time has come for us to show solidarity and come together to become part of NUCFDC,” Mehta said, stressing that the umbrella body would extend both fund-based and non-fund-based support to UCBs.

Introducing NUCFDC CEO Prabhat Chaturvedi to the gathering, Mehta invited him to present the detailed scope and progress of the umbrella organization. Chaturvedi explained that NUCFDC, owned 80% by UCBs and 20% by the Government of India, is supported by the RBI and Ministry of Cooperation.

Its objective is to empower UCBs with financial services such as capital support, loans, refinance, and liquidity assistance, as well as non-financial services like centralized IT infrastructure, fund management, consultancy, manpower planning, training, and research.

As of August 2025, NUCFDC has mobilized Rs 277.71 crore from 324 UCBs, NCDC, and federations, with top contributors including Saraswat Bank (Rs 43 crore), SVC Bank, TJSB, and Cosmos Bank (Rs 15 crore each). Maharashtra and Gujarat remain the largest shareholder states, followed by Tamil Nadu, Telangana, Karnataka, and Rajasthan. The balance of Rs 22.29 crore is expected to be raised in the September 2025 round.

On the services front, NUCFDC has already rolled out several initiatives. These include digital solutions like Sahakar CBS, UPI Switch, Loan Origination System, and Bank Statement Analyzer, along with compliance tools, IT infrastructure, cybersecurity solutions, and shared services such as Legal-as-a-Service and Technology Consulting. Its training initiative, Sahakar Paathshaala, has also gained traction. Over 500 service onboardings have taken place across 295 unique UCBs.

The umbrella body promises far-reaching benefits for UCBs, including reducing IT costs by up to 50%, enabling mobile banking in local languages, AI/ML-driven paperless lending, and greater cyber resilience.

With opportunities for fee-based income, improved branding, and wider financial inclusion, NUCFDC is being positioned as a sector-owned, mission-driven institution to modernize, stabilize, and strengthen the cooperative banking ecosystem.