RBI Central Board Director Satish Marathe visited the Mumbai headquarters of the National Urban Co-operative Finance and Development Corporation (NUCFDC), the apex body overseeing Urban Cooperative Banks (UCBs) and discussed the progress of the newly created entity.
He was accompanied by Sanjay Pachpor, National Organizing Secretary of Sahakar Bharati. NUCFDC Chairman Jyotindra Mehta welcomed them and acknowledged their contributions to the banking and cooperative sectors.
During the visit, Marathe and Pachpor discussed NUCFDC’s ongoing initiatives, particularly its efforts to achieve a regulatory target of Rs 300 crore in paid-up capital. The corporation has so far raised Rs 242.5 crore, with the remaining Rs 40 crore expected to come from smaller Tier I and Tier II UCBs.
At a recent extraordinary general meeting, NUCFDC approved a fresh capital infusion of Rs 124.5 crore, following an initial Rs 118 crore raised last year. These efforts are crucial for strengthening cooperative banking infrastructure and facilitating RBI registration.
Established in February 2024, NUCFDC serves 1,472 UCBs by enhancing operational efficiency, improving IT infrastructure, and expanding financial services. CEO Prabhat Chaturvedi emphasized that the institution is committed to modernizing cooperative banking, ensuring better financial inclusion and stability.
In a parallel development, the government has announced plans to establish a ‘Cooperative Bank of India’ to function as a central clearing house for UCBs, State Cooperative Banks (SCBs), and District Central Cooperative Banks (DCCBs). This initiative will be spearheaded by NUCFDC and is expected to be operational within two years.
Union Home and Cooperation Minister Amit Shah, speaking at an event in Pune recently, reaffirmed the government’s commitment to fortifying the cooperative banking sector. He highlighted that the Rs 300 crore share capital target had been met, paving the way for financial assistance, technological upgrades, and infrastructural support for cooperative banks nationwide.
The initiative aims to enhance operational efficiency, facilitate the adoption of Core Banking Solutions (CBS), and provide much-needed financial relief to struggling cooperative banks.
These developments mark a significant milestone in strengthening India’s cooperative banking framework, ensuring financial resilience and expanded services for millions of cooperative bank customers.
