The National Cooperative Policy proposes to facilitate the strengthening of cooperative banks, enabling them to become eligible for handling government business.
By enhancing their financial and operational capacity, the policy aims to integrate cooperative banks more effectively into the mainstream banking ecosystem.
A key recommendation of the policy is to obtain Self-Regulatory Organization (SRO) status from the Reserve Bank of India.
This would empower cooperatives to frame and enforce their own rules and regulations, ensuring customer protection while promoting ethics, equality, and professionalism across the sector.
The policy also encourages the recently established Umbrella Organization, National Urban Cooperative Finance and Development Corporation (NUCFDC), to take the lead in supporting Urban Cooperative Banks (UCBs). It envisions NUCFDC playing a crucial role in developing and managing a common technology platform to help UCBs deliver a modern banking experience.
Additionally, NUCFDC is expected to subscribe to the equity of UCBs and extend short-term liquidity support to ensure financial stability and resilience in the sector.