HM Amit Shah to Inaugurate NUCFDC for Urban Cooperative Banks Modernization on March 2
New Delhi, 1st March. Union Home Minister and Minister of Cooperation Amit Shah is set to inaugurate the National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), the umbrella organization for Urban Cooperative Banks (UCBs), on Saturday, March 2nd, 2024, at Vigyan Bhawan in New Delhi.
Under the leadership of Prime Minister Narendra Modi and the guidance of Amit Shah, the establishment of this umbrella organization marks a significant step towards achieving the goal of ‘Sahakar se Samriddhi’ for an ‘Aatma Nirbhar’ Bharat. This initiative aims to modernize and strengthen the Urban Cooperative Banking Sector, benefiting both banks and customers alike.
NUCFDC has obtained a Certificate of Registration from the Reserve Bank of India to function as a Non-Banking Finance Company (NBFC) and serve as the umbrella organization for the urban cooperative banking sector. It will also operate as a Self-Regulatory Organization (SRO) for the sector.
The formation of NUCFDC will provide specialized functions and services to cooperative banks, facilitate communication between banks and regulators, and address challenges faced by Urban Cooperative Banks, including technology constraints and service range issues.
With plans to reach a capital base of Rs.300 crores, NUCFDC aims to raise capital to support Urban Cooperative Banks and develop a shared technology platform to enhance service offerings and reduce costs. Discussions are ongoing with Urban Cooperative Banks and various stakeholders to raise capital.
Additionally, the umbrella organization will establish a technology platform shared by all UCBs, enabling them to expand their services at a lower cost. It will also provide fund management and consultancy services.
Currently, India has over 1,500 scheduled and non-scheduled Urban Cooperative Banks with a total branch count exceeding 11,000, and a deposit size of over Rs 5.33 lakh crore, and total lending exceeding Rs 3.33 lakh crore. Many of these banks face challenges related to technology platforms and offering modern banking services.
Participation in NUCFDC will enable these banks to upgrade to the latest technology and offer new products and services. The inauguration of this umbrella organization is a significant event with the potential to bring positive transformation at the grassroots level, empowering communities across the nation.
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