The National Urban Cooperative Finance and Development Corporation (NUCFDC), which will act as an Umbrella Organization (UO) for UCBs in the country, will get the ‘in principle’ approval for Certificate of Registration from Reserve Bank of India soon.
The information was shared by Atul Khirwadkar, who was appointed as the CEO of the NUCFDC a few months back.
“We already applied for registration of NUCFDC as NBFC-ND with the RBI and hope that the approval for certificate of registration will be received sooner than later. We got Rs 12 crore as a capital from around 15 urban cooperative banks and the majority of them are from Maharashtra and Gujarat. Besides, 140 UCBs have given their commitment to contribute. The cooperative lender-NCDC will grant equity of Rs 200 crore,”, Khirwadkar said while talking to the Indian Cooperative correspondent.
He further added, we are hoping that the things will take concrete shape in less than 12 months. Several meetings with representatives of Urban Cooperative Banks are going on in different parts of the country and are appealing to UCBs to contribute funds. The NUCFDC will provide modern facilities based on the latest technology to UCBs.
“Our plan is to help those UCBs which fail to afford the latest technology due to higher cost. We will support them and find the solution for them. We will help them avoid cyber attack”, said Khirwadkar, who was earlier the MD & CEO of Kalyan Janata Sahakari Bank.
Recently, the apex body of UCBs-Nafcub organized a meeting at New Delhi, in which RBI CE J K Dash was the chief guest. During the meeting, P K. Arora, former CGM, RBI made a detailed presentation on the present status of NUCFDC.
It bears recalling that the national level Umbrella Organisation (UO) is expected to provide liquidity and capital support to member co-operative banks. Besides, in times of rising cyber frauds, UO would also offer cutting edge technology to its members who, due to their small size, can hardly afford the same on their own.
The UO will have an authorised capital of Rs 100 crore. Initially issued 12 crore and paid up capital will be Rs 300 crore. The Steering Committee recommended that if each UCB contributes Rs 0.10 per every Rs 100 of assets, the above amount of Rs 300 crore can be contributed to the capital of the UO by all the UCBs.