NCDC signs MoU with NAFSCOB to take co-op banking to a new level

The cooperative lender National Cooperative Development Corporation (NCDC) and apex body of state cooperative banks-Nafscob signed an MoU through video conferencing on Thursday.

This MoU was signed on the sidelines of a board meeting of India Potash Limited held virtually. On behalf of Nafscob its Chairman Dileep Sanghani and Sundeep Nayak, MD, NCDC signed on behalf of NCDC.

This MoU is intended to build mutual cooperation between ‘NCDC’ and ‘NAFSCOB’ so as to learn, assimilate and develop further on the core strengths, experience and institutional objectives of the respective parties in the public interest of advancement of training, action research, studies, consultancy, monitoring, evaluation, systems development and technology development in the areas of development of cooperative banking sector.

It Is being reported that though the MoU was intended to be signed physically between the concerned authorities but due to the lockdown it could not happen.

This has been signed for a period of five years and gets extended automatically for further period of five years.

According to the MoU, while expanding the areas of cooperation and helping each other to expand their areas of activities, both the parties will strive to bring more and more opportunities of financial support for achieving objectives in their respective domains.

“NCDC financial assistance for the cooperative banking sector starting from PACS or similar institutions at the primary level and upwards, for achieving the objectives under this MoU would be under the NCDC funding guidelines as applicable. The parties may act as resource pools to each other in furthering the objectives on payment of fees basis for the services rendered as applicable”, it further reads.

Under this MoU both the parties have mutually agreed to assist the cooperative banking sector through advancement of systems development and technology development through various means including setting up of new mechanisms.

“Make efforts to sponsor or to invite each other or to jointly operationalize for national and international institutions building activities, training activities, research activities, studies, seminars, conferences and workshops”, according to the MoU.