Union Minister for Cooperation Amit Shah launched the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), the umbrella organization for urban cooperative banks in New Delhi. This initiative aims to modernize and strengthen the urban co-operative banking sector, which will benefit both the banks and their customers.
Main functions of NUCFDC
NUCFDC aims to facilitate integration of UCBs into the broader banking ecosystem by ensuring compliance with the Banking Regulation Act. This move is expected to boost the competitiveness and stability of these banks in the evolving financial landscape. The emphasis on self-regulation and compliance with Reserve Bank of India regulations underlines UCBs' commitment to enhancing operational excellence.
With a wide network comprising 11,000 branches across 1,500 banks, the collective resources of UCBs are substantial, with total deposits of Rs 5 lakh crore and loan amount of Rs 3.50 lakh crore. The decline in net non-performing assets (NPAs) to 2.10% highlights the ongoing efforts towards financial stability and operational efficiency within the UCB sector.
Role of NUCFDC
The strategic vision of NUCFDC includes expanding the presence of urban co-operative banks in every city, underscoring the ambition to make co-operative banking more accessible and impactful in urban areas of India. This initiative is an important step towards achieving greater inclusivity and flexibility in the banking sector, which will ensure that co-operative banks continue to play a vital role in India's economic growth.