Recently, the Ministry of Cooperation constituted the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), an Umbrella Organisation (UO) for UCBs.
About NUCFDC
- 2006: The need for an Umbrella Organisation (UO) for India’s UCB sector was first emphasized by an RBI Working Group chaired by Shri N.S. Viswanathan.
- 2009: RBI’s Working Group under the chairmanship of Shri V.S. Das recommended a model of a national level UO i.e., NUCFDC.
- 2019: RBI accorded regulatory approval to the NAFCUB (National Federation of Urban Co operative Banks and Credit Societies Ltd) (refer to the box) for the formation of NUCFDC.
Major functions envisaged for NUCFDC
- Offering liquidity and capital support: To raise capital, with plans to reach a capital base of Rs.300 crores to support UCBs.
- NUCFDC can also offer fund management and other consultancy services to UCBs.
- Facilitate regulatory compliance:
- Prepare small banks for compliance with the Banking Regulation Act (BRA), 1949.
- Facilitate communication between UCBs and regulators.
- Develop a shared technology platform: NUCFDC will enable UCBs to widen their range of services at a relatively lower cost.
National Federation of Urban Co-operative Banks and Credit Societies Ltd (NAFCUB)
- HQ: New Delhi
- Genesis: It is a national co-operative society which in 1977 got registered under the Multi-State Cooperative Societies Act .
- Role: NAFCUB is an Apex Level Promotional body of UCBs and Credit Societies Ltd in the Country.
- Activities: Training programmes,Research conclaves, Core Banking Solutions (CBS) initiatives
Members: It is open to
- UCBs and Urban Credit Societies
- The State Federations /Association of Urban Banks and/or Credit Societies.
- National Co-operative Union of India
- Any other organization useful for the furtherance of the objects of the Federation, with the approval of the Central Registrar of Co-operative Societies
- No individual shall be eligible for membership of the Federation.