The Rajasthan Urban Cooperative Banks Federation and the Gujarat Urban Cooperative Banks Federation jointly organized a seminar in Jaipur on Thursday, which was graced by Rajasthan Governor Haribhau Bagade.
The event brought together representatives from urban cooperative banks (UCBs) of both states to deliberate on strengthening the cooperative banking sector.
In his keynote address, Governor Bagade underlined the inclusive character of cooperatives, stressing that their objective is to uplift weaker sections of society rather than pursue profit alone.
Recalling his experience with Deogiri Nagari Sahakari Bank, he narrated how focused recovery efforts transformed a C-grade bank into a top-ranked institution. “The core objective of cooperatives is not just profit-making but ensuring financial support, protecting small farmers, and helping people rise above the poverty line,” he said.
The Governor further emphasized that cooperatives have been a powerful vehicle for financial inclusion, aligning with initiatives such as the Jan Dhan Yojana, which enabled the opening of more than 50 crore bank accounts. He also highlighted the sector’s potential in employment creation, women’s empowerment, and sustainable development.
RBI Director Satish Marathe, addressing the seminar, stressed the importance of the amendments to the Banking Regulation Act, which vested full regulatory powers of UCBs with the Reserve Bank of India. “Dual regulation was never effective.
“Today, UCBs have shown resilience with net NPAs at just 1.30 percent. However, growth remains modest at 4–5 percent compared to 10–15 percent in the wider banking sector. There is an urgent need for capital strengthening, technology adoption, and reinventing business models to meet the expectations of aspirational clients,” he remarked.
NUCFDC Chairman and Gujarat UCB Federation Chairman Jyotindra Mehta briefly outlined the objectives, history, and future goals of the National Urban Cooperative Finance and Development Corporation (NUCFDC), which is functioning as an umbrella organization for UCBs. He also referred to international umbrella models such as Rabobank (Netherlands) and Crédit Agricole (France) as examples to emulate.
Welcoming the gathering, Rajasthan UCB Federation Chairman Mohan Parashar highlighted the strength of the state’s sector, which currently comprises 34 banks, 248 branches, 4.60 lakh members, Rs 300 crore in share capital, and a net profit of Rs 88 crore. He proudly noted that all banks in Rajasthan reported profits in the past year, with gross NPAs remaining low.
The seminar concluded with both federations affirming their commitment to work jointly under a common umbrella framework to take the urban cooperative banking movement to the next level.