The National Federation of Urban Cooperative Banks and Credit Societies Ltd. (NAFCUB) on Saturday organised a programme to mark the International Day of Cooperatives, with Union Minister of State for Cooperation Krishan Pal Gurjar attending as the chief guest.
The event brought together senior officials from the Ministry of Cooperation, the Reserve Bank of India, cooperative banking institutions and sector representatives, who unanimously stressed the need for Urban Cooperative Banks (UCBs) to embrace technology, strengthen governance and accelerate business growth.
Union Minister of State for Cooperation Krishan Pal Gurjar, the chief guest, said the cooperative movement has gained unprecedented momentum since the creation of the Union Ministry of Cooperation under the leadership of Union Home and Cooperation Minister Amit Shah.
Highlighting reforms such as amendments to the Multi-State Cooperative Societies Act, higher housing loan limits for cooperative banks and the creation of new national cooperative institutions, he urged UCBs to embrace digital banking and innovation to expand financial inclusion.
NAFCUB Chairman Laxmi Dass said several long-pending issues of Urban Cooperative Banks have been resolved by the Ministry of Cooperation, enabling the sector to move forward with renewed confidence. He said UCBs now hold deposits of nearly Rs 6 lakh crore, while the overall cooperative credit ecosystem is valued at around Rs 20 lakh crore, underlining the growing trust of customers.
RBI Central Board Director Satish Marathe said UCBs must improve their market share, noting that while India’s banking sector is growing at 12-15 per cent annually, cooperative banks are expanding at only 4-5 per cent. He said future growth would depend on technology adoption, professional management, skilled manpower and stronger governance despite many UCBs achieving zero NPAs.
Additional Secretary, Ministry of Cooperation Pankaj Bansal said UCBs account for only about three per cent of India’s banking sector and urged them to modernise operations, recruit professionals on merit and adapt to changing times, warning that institutions resisting change risk becoming “the next Nokia.”
Director, Ministry of Cooperation Kumar Ram Krishna emphasised cyber security and called on UCBs to integrate with the Indian Cyber Crime Coordination Centre (I4C) through NUCFDC’s Unnati Cyber Protection platform. He also encouraged banks to expand AePS services, join CGTMSE as Member Lending Institutions and support NUCFDC’s proposal to become a Self-Regulatory Organisation.
The programme also featured a presentation on corporate governance by Dr. K. K. Tripathy.
Among those present were NCDC General Council Member Dhananjay Singh, NAFCUB Director Mohan Parashar, NAFCUB CEO Rakesh Dua, Subhash Gupta, Yogesh Sharma and senior representatives from cooperative banks. The proceedings were anchored by Vivek Gupta of NAFCUB.
