A high-level delegation from the National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC) met Sanjay Malhotra, Governor of the Reserve Bank of India (RBI), in Mumbai on March 14 to present a comprehensive update on the progress of the Umbrella Organisation for Urban Co-operative Banks (UCBs).
The NUCFDC delegation, led by Chairman Jyotindra Mehta, included Advisor to the Board V. S. Das, Chief Executive Officer Prabhat Chaturvedi, and Chief Technology Officer Padmabhushan Bahadure. The team highlighted the strides made since the operationalisation of NUCFDC, particularly in building a robust institutional framework to support UCBs across the country.
One of the key milestones shared during the meeting was the organisation’s paid-up capital, which has reached Rs 300.95 crore. NUCFDC has also significantly expanded its footprint, with 482 UCBs across 24 states now part of its membership base. Notably, 483 UCBs are already utilising its services, indicating growing trust and adoption of the shared infrastructure being developed for the sector.
A major focus of the discussions was on digital transformation within the urban co-operative banking ecosystem. The delegation outlined initiatives aimed at strengthening digital capabilities, especially for smaller UCBs that often face resource constraints. In this context, NUCFDC proposed enabling banks with a net worth below Rs 50 crore to participate in digital payment platforms through a centrally managed infrastructure.
This initiative is expected to play a crucial role in enhancing financial inclusion by allowing smaller co-operative banks to offer modern digital services without the need for heavy individual investments. It also aligns with the broader objective of integrating UCBs more deeply into the evolving digital payments landscape.
The meeting also covered wider sectoral issues, including the need for stronger institutional coordination within the UCB ecosystem. Discussions touched upon capacity-building efforts under Mission SAKSHAM (Sahakari Bank Kshamta Nirman), an RBI-led initiative designed to enhance the operational and managerial capabilities of co-operative banks. Collaboration with institutions such as Tribhuvan Sahkari University was also deliberated as part of long-term capacity development.
Another important aspect of the interaction was ensuring alignment between the Umbrella Organisation’s functioning and the regulatory framework set by the RBI. Both sides emphasised the importance of maintaining financial stability while enabling innovation and growth in the sector.
The meeting underscored a shared commitment to strengthening the institutional architecture supporting urban co-operative banks. With increasing emphasis on digital enablement, governance, and capacity building, NUCFDC is emerging as a key pillar in driving resilience and modernisation across India’s UCB sector.