Cooperation Minister Amit Shah on Saturday inaugurated the National Urban Cooperative Finance and Development Corporation (NUCFDC), the apex body of Urban Cooperative Banks (UCBs), in New Delhi. The NUCFDC is expected to enhance the development, modernization and capacity of UCBs in the country.
Shah said that the NUCFDC was formed after nearly 20 years of struggle and it was a very auspicious day for the cooperative sector. He mentioned that Prime Minister Narendra Modi had established a separate Ministry of Cooperation to breathe new life into the cooperative movement and make it a people’s movement.
Shah emphasized that the parameter of development cannot be just numbers, it should be judged through a significant parameter of how many people participate in the country’s development. He said that the cooperative sector can play a vital role in this regard by providing financial inclusion and empowerment to the common people.
Shah suggested the Board of the newly launched NUCFDC to set up one urban cooperative bank in each unrepresented town/city in a time-bound program. He also said UCBs should upgrade themselves to provide ATM facility, credit/debit cards, clearing system, maintain SLR (statutory liquidity ratio) limit and refinancing, similar to what public and private banks are offering.
Shah said that the NUCFDC has received RBI’s approval to function as a non-banking finance company and a self-regulatory organisation for the urban cooperative banking sector. He said that this would serve as a security shield for small banks, enhancing depositors’ confidence and ensuring further progress in work in the coming days.
Shah said that the NUCFDC would not only be a support during the crisis of banks but also a means to enhance their development, modernization and capacity. He said that the NUCFDC would help urban cooperative banks adhere to the Banking Regulations Act and bring professionalism in their work.
Shah said that there are more than 1,500 UCBs with 11,000 branches, having a deposit of ₹5 lakh crore and credit base of ₹3.50 lakh crore across the country. He said that though UCBs have reduced their net NPA rate to 2.10 per cent, still there is scope for further reduction.
Shah said that the NUCFDC should achieve its target paid-up capital within a year and not depend on others. He said that the National Cooperative Development Corporation (NCDC) has committed ₹200 crore to it. He said that if the paid-up capital is met by UCBs, then only the RBI will have confidence in them.
Shah congratulated all the stakeholders of the NUCFDC and expressed hope that it would become a milestone in the history of urban cooperative banking in India.
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