NUCFDC's headquarters to shift to Maharashtra, says HM Amit Shah
Mumbai, Aug 8
Union Cooperation Minister Amit Shah said on Saturday that the 'Umbrella Organisation' will play a crucial role in making the urban co-operative banking sector modern, transparent, trustworthy, and technology-driven.
This initiative will significantly boost the expansion of urban co-operative banking networks to every tehsil across the country.
Making a major announcement for the nation's urban co-operative banking sector, the Union Home Minister added that the headquarters of the National Urban Co-operative Finance and Development Corporation (NUCFDC) will be shifted from Delhi to Maharashtra.
"Maharashtra alone accounts for 449 co-operative banks and contributes immensely to India's co-operative banking landscape. States, including Maharashtra, Gujarat, Goa, and Karnataka, host a substantial concentration of the country's urban co-operative banks. Therefore, locating the umbrella organisation's headquarters in Maharashtra is both practical and advantageous. The ultimate objective is to bring all urban co-operative banks under a single umbrella," Union Minister Shah said.
He was speaking as the chief guest at the 'Sahakar Nav-Kranti Mela' in Mumbai.
The event was attended by Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde, Minister of State for Cooperation Krishan Pal Gurjar, Minister of State Murlidhar Mohol, State Marketing Minister Jaykumar Rawal, Cooperation Minister Babasaheb Patil, NUCFDC Chairman Jyotindra Mehta, Union Cooperation Secretary Ashish Kumar Bhutani, along with representatives from various urban co-operative banks.
Union Minister Shah urged every urban co-operative bank in the country, even single-branch institutions, to join the umbrella organisation as a member.
"Upon joining, banks should connect to the Security Operations Centre (SOC). This will bolster depositor trust and make the co-operative banking sector significantly more secure. The umbrella organisation will provide updates on the latest banking reforms and offer essential digital solutions such as 'Mule Hunter' software. It will also conduct crucial employee training programs."
He expressed confidence that the umbrella body would guide these banks to stand competitive alongside commercial institutions and earn the trust of both the public and the Reserve Bank of India (RBI).
Union Minister Shah noted that nearly 1,400 urban co-operative banks across India hold total deposits worth around Rs 6 lakh crore.
These institutions play a vital role in national economic development by catering to small shopkeepers, traders, cottage industries, MSMEs, local entrepreneurs, self-help groups, and middle-income families who require small-ticket loans.
While large commercial banks often struggle to address these micro-needs, taluka-level urban co-operative banks excel at it.
Smaller loan amounts also demonstrate higher repayment rates; the limit for collateral-free loans has recently been raised from Rs 2.5 lakh to Rs 5 lakh, with an impressive 99.78 per cent repayment rate, including interest.
Highlighting Prime Minister Narendra Modi's vision of a 'Viksit Bharat' by 2047, Union Minister Shah emphasised that 'Sahkar Se Samriddhi' (Prosperity Through Cooperation) means enriching individual bank customers rather than just institutional balance sheets.
"Today marks a major milestone toward building a modern, secure, transparent, and globally capable urban co-operative banking system."
Addressing the surge in digital transactions and rising cyber fraud, Union Minister Shah stressed the necessity of forensic tools to secure online banking operations.
The RBI has already introduced mechanisms like 'Mule Hunter'.
The Memorandum of Understanding (MoU) signed with the National Forensic Sciences University (NFSU) will provide infrastructure for cybersecurity, fraud prevention, digital forensics, banking security, and workforce training.
During the event, Amit Shah virtually launched the Security Operations Centre (SOC) for urban co-operative banks.
A practical guide titled 'Operational Risk Management -- A Practical Guide to Urban Co-operative Banks', authored by former RBI Deputy General Manager G.P. Mistry, was released.
Representatives of the first six urban co-operative banks successfully integrated with the 'Sahakar CBS' system were felicitated.
Core banking services and associated offerings under the national service bundle were launched.
The formal MoU exchange between NUCFDC and the National Forensic Sciences University took place.
— IANS
Reader Comments
The shift to Maharashtra is long overdue. Yahan pe cooperative movement ka itna bada network hai, especially in Mumbai and Pune. But I hope this doesn't mean Delhi's cooperative banks get neglected. Both regions need equal focus.
The 99.78% repayment rate on collateral-free loans is absolutely phenomenal! That shows how trustworthy small borrowers are. PM Modi's vision of 'Sahkar Se Samriddhi' is really paying off. Great initiative by Amit Shah ji. 🇮🇳
I work with a cooperative bank in Pune and this move gives us so much hope. The focus on cybersecurity with the Security Operations Centre and Mule Hunter software is crucial, especially with online frauds increasing these days. Happy to see this! 🎉
As someone who has studied cooperative banking models globally, I find India's approach interesting. The emphasis on taking technology and modern banking practices to the grassroots level is commendable. The 99.78% repayment rate is a strong indicator of financial discipline at the local level.
Good decision but I wish they had addressed the issue of urban cooperative banks that have faced mismanagement in the past. Moving HQ to Maharashtra is one thing, but ensuring transparency at every branch level is crucial. Hope the training programs mentioned are robust enough. 🤔
K We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.