Addressing participants from the UCB sector during the inauguration of the umbrella organization for UCBs, Union Home and Cooperation Minister Amit Shah said the newly formed National Urban Cooperative Finance and Development Corporation Limited (NUCFDC) would act as a ‘Suraksha Kavach’, especially for smaller urban cooperative banks.
“I am sure that NUCFDC will effectively protect the interests of smaller UCBs and help them compete with other players in the market on all aspects,” said Shah.
He further added that the Umbrella Organization would enhance depositor confidence in urban cooperative banks and encourage them to deposit their money with these banks.
Shah also highlighted a major role for the umbrella organization, which is to prepare small banks for compliance with the Banking Regulation Act.
As of 31st March 2023, there were 896 urban cooperative banks in the Tier 1 category, considered to be smaller UCBs. The number of UCBs declined steadily between March 2004 and March 2023, from 1,926 to 1,502.
