The National Urban Co-operative Finance and Development Corporation (NUCFDC) has officially inaugurated its Corporate Office in Mumbai. The Honourable Union Home and Cooperation Minister, Amit Shah, virtually inaugurated the NUCFDC Corporate Office on the sidelines of the inaugural event for the International Year of Co-operatives 2025 in Mumbai.
The event was attended by a distinguished group of dignitaries, including Shri Murlidhar Mohol, Minister of State for Co-operation; Shri Eknath Shinde and Shri Ajit Pawar, Deputy Chief Ministers of Maharashtra; and Dr. Ashish Kumar Bhutani, Secretary of the Ministry of Co-operation.
The inauguration of the NUCFDC office marks a significant step toward modernizing the Urban Co-operative Banking (UCB) sector. The event was attended by Laxmi Dass, President of NAFCUB; Ajay Brahmecha, President of the Maharashtra Federation; Satish Marathe, Central Board Member of the Reserve Bank of India; Uday Joshi, President of Sahakar Bharati; Milind Kale, Director of NAFCUB and former Chairman of Cosmos Bank; Gautam E. Thakur, Chairman of Saraswat Co-operative Bank; and Kantibhai Patel, Vice-Chairman of the Gujarat Federation, along with several other prominent leaders from the UCB sector.
Emphasizing the multidimensional benefits that the NUCFDC will provide to Urban Co-operative sector Honourable Union Home and Cooperation Minister Amit Shah said, “The principle of Co-operation Among Co-operatives will be implemented across the country in the coming days. The Umbrella Organization will integrate activities such as digital banking, mobile banking, online transactions, and international trade with Urban Co-operative Banks.
All financial dealings of co-operative institutions will be conducted through co-operative banks. By implementing this principle nationwide, we will achieve significant success, leading to the economic self-reliance of the co-operative sector." Shri Jyotindra Mehta, Chairman of NUCFDC, spoke on the occasion, describing the inauguration as a pivotal moment in the transformation of the UCB sector.
"The establishment of this new office for the Umbrella Organization marks a major milestone in driving inclusive growth. NUCFDC is dedicated to providing essential resources to this vital segment of the country's financial ecosystem. We are committed to fostering the development of UCBs and addressing the key challenges they face," he said.
The NUCFDC has received approval from the Reserve Bank of India (RBI) to operate as a non-banking finance company (NBFC) and, once it achieves a paid-up capital of ₹300 crore, can approach the RBI to become a self-regulatory organization (SRO) for the urban co-operative banking sector, with functions prescribed by the RBI.
Positioned to play a crucial role in the digital transformation of UCBs, NUCFDC aims to equip these institutions with the necessary tools to succeed in an increasingly digital and competitive financial landscape. As the umbrella organization for UCBs, NUCFDC's focus will be on modernizing these institutions, integrating essential financial services, and aligning them with the operational standards of commercial banks.
The goal is to enhance customer service, strengthen sector stability, and ensure compliance with the Banking Regulations Act. The organization’s operations will include providing capital, secured credit lines, refinancing loans, and offering emergency liquidity support to UCBs facing short-term financial difficulties.
In addition to funding, NUCFDC will also focus on non-fund-based services aimed at enhancing the technological infrastructure of UCBs. This will include the rollout of a shared IT platform offering a comprehensive suite of services. Furthermore, NUCFDC will provide treasury management, payment and settlement services, and other operational solutions to improve the capabilities of UCBs.
It will also offer training, consultancy, and HR support to ensure UCBs are well-equipped to navigate evolving regulatory and market demands, laying a solid foundation for the future growth and resilience of the co-operative banking sector.