In a significant move to reform and professionalize India’s urban cooperative banking ecosystem, the National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC) and the Institute of Internal Auditors India (IIA India) have entered into a strategic partnership aimed at strengthening audit standards, internal controls, and governance frameworks across the sector.
A Memorandum of Understanding (MoU) was signed in Mumbai by Prabhat Chaturvedi, CEO of NUCFDC, and K. V. Mukundan, CEO of IIA India, signaling the start of a long-term collaboration to build institutional resilience and boost depositor confidence.
The partnership seeks to bring globally accepted internal audit practices to urban cooperative banks (UCBs), aligning with regulatory objectives promoted by the Reserve Bank of India (RBI). RBI has been encouraging banks to adopt risk-based internal audits that follow international frameworks such as those established by the Institute of Internal Auditors (IIA Global) and the Basel Committee on Banking Supervision (BCBS).
Under the MoU, IIA India will support NUCFDC in promoting global audit standards, helping UCBs enhance their internal control systems, audit capacity, and senior management capabilities.
Through this collaboration, participating UCBs will gain access to IIA India’s extensive global resources, including Internal Auditor magazine, Tone at the Top briefings, structured learning modules, global webinars, and on-ground workshops.
These initiatives are aimed at developing professional internal auditors and strengthening audit quality across the cooperative banking spectrum. Additionally, the partnership will include resources on emerging practices related to ESG (Environmental, Social, Governance) and artificial intelligence in risk frameworks.
NUCFDC will serve as a facilitator to help UCBs adopt these systems, institutionalize best practices, and implement more robust governance models. The initiative is expected to provide long-term benefits, particularly in improving transparency and accountability within cooperative financial institutions that cater to millions of urban customers and small businesses.
Chaturvedi noted that audit quality and governance reform lie at the core of NUCFDC’s mandate, and this alliance will enable UCBs to raise their institutional standards. Mukundan echoed this view, stating that the MoU represents a meaningful step toward embedding global governance and audit practices in India’s cooperative finance landscape.
Other key officials present during the signing included Sumit Hans, chief business officer of NUCFDC; Manish Solanki, president of IIA Bombay Chapter; and Rajiv Divadkar, chief growth officer of IIA India. Their involvement reflects the high-level commitment from both organizations to push for audit-led reforms in the sector.
This strategic tie-up comes at a crucial moment, as both policymakers and regulators intensify their focus on strengthening the cooperative banking sector, which has faced challenges related to governance failures and public trust.