MIL-OSI Asia-Pac: Union Home Minister and Minister of Cooperation, Shri Amit Shah to launch National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), the Umbrella organization for the Urban Cooperative Banks (UCBs) on Saturday in New Delhi

9
Recommended Sponsor Painted-Moon.com - Buy Original Artwork Directly from the Artist

Source: Government of India (2)

Union Home Minister and Minister of Cooperation, Shri Amit Shah to launch National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), the Umbrella organization for the Urban Cooperative Banks (UCBs) on Saturday in New Delhi

Under the dynamic leadership of the Prime Minister Shri Narendra Modi and the able guidance of Union Home Minister and Minister of Cooperation Shri Amit Shah, setting up of NUCFDC is another millstone in achieving the goal of ‘Sahakar se Samriddhi’

This initiative aims to modernize and strengthen the Urban Cooperative Banking Sector in India, ultimately benefiting both the banks and their customers

NUCFDC will ensure specialized function and services to cooperative banks, facilitate communication between banks and regulators, and address challenges faced by Urban Cooperative Banks

Posted On: 29 FEB 2024 6:37PM by PIB Delhi

Union Home Minister and Minister of Cooperation, Shri Amit Shah to launch National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), the Umbrella organization for the Urban Cooperative Banks (UCBs) on Saturday, 2ndMarch 2024 at Vigyan Bhawan in New Delhi.

Under the dynamic leadership of the Prime Minister Shri Narendra Modi and the able guidance of Union Home Minister and Minister of Cooperation Shri Amit Shah, setting up of the umbrella organization is another milestone in achieving the goal of ‘Sahakar se Samriddhi’ to make ‘Aatma Nirbhar’ Bharat. This initiative aims to modernize and strengthen the Urban Cooperative Banking Sector in India, ultimately benefiting both the banks and their customers.

The NUCFDC has received Certificate of Registration (CoR) from the Reserve Bank of India to operate as a Non Banking Finance Company (NBFC) and serve as the umbrella organization for the urban cooperative banking sector. In addition to this, it will be allowed to operate as a Self-Regulatory Organization (SRO) for the sector.

The establishment of this umbrella organization will ensure specialized function and services to cooperative banks, facilitate communication between banks and regulators, and address challenges faced by Urban Cooperative Banks, such as technology constraints and issues regarding range of services.

The NUCFDC aims to raise capital, with plans to reach a capital base of Rs.300 crores. It intends to utilize this capital to support Urban Cooperative Banks and develop a shared technology platform to improve service offerings and reduce costs. To raise capital, discussions are going with Urban Cooperative Banks and various other stakeholders.

Besides offering liquidity and capital support, the umbrella organization would set up a technology platform that can be shared by all UCBs, enabling them to widen their range of services at a relatively lower cost. It can also offer fund management and other consultancy services.

At present, there are over 1,500 scheduled and non-scheduled Urban Cooperative Banks in India with a total number of branches exceeding 11,000. The banks have a deposit size of over Rs 5.33 lakh crore, and total lending of more than Rs 3.33 lakh crore. Many of these banks haveconstraints related to technology platforms, and difficulties in offering modern banking services.

“By being part of NUCFDC, most of these banks would be able to upgrade to the latest technology and will be able to offer new products and services. Inauguration of this umbrella organization is itself a milestone event in the sector which has the potential to bring positive transformation at the grassroots level, empowering the communities across the nation, they would benefit from common marketing, treasury and network management.

*****

RK/ASH/RR/PS

(Release ID: 2010318) Visitor Counter : 71

Read this release in: Hindi

MIL OSI Asia Pacific News