Learn bits
Economy
Mahesh

02/03/24 13:08 PM IST

National Urban Co-operative Finance and Development Corporation Limited (NUCFDC)

In News
  • Union Home Minister and Minister of Cooperation, Shri Amit Shah to launch National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), the Umbrella organization for the Urban Cooperative Banks (UCBs).
About NUCFDC
  • The NUCFDC has received Certificate of Registration (CoR) from the Reserve Bank of India to operate as a Non Banking Finance Company (NBFC) and serve as the umbrella organization for the urban cooperative banking sector.
  • In addition to this, it will be allowed to operate as a Self-Regulatory Organization (SRO) for the sector.
  • The NUCFDC aims to raise capital, with plans to reach a capital base of Rs.300 crores.
  • It intends to utilize this capital to support Urban Cooperative Banks and develop a shared technology platform to improve service offerings and reduce costs.
  • To raise capital, discussions are going with Urban Cooperative Banks and various other stakeholders.
  • Besides offering liquidity and capital support, the umbrella organization would set up a technology platform that can be shared by all UCBs, enabling them to widen their range of services at a relatively lower cost. It can also offer fund management and other consultancy services.
  • At present, there are over 1,500 scheduled and non-scheduled Urban Cooperative Banks in India with a total number of branches exceeding 11,000.
  • The banks have a deposit size of over Rs 5.33 lakh crore, and total lending of more than Rs 3.33 lakh crore. Many of these banks haveconstraints related to technology platforms, and difficulties in offering modern banking services.
Significance
  • The establishment of this umbrella organization will ensure specialized function and services to cooperative banks, facilitate communication between banks and regulators, and address challenges faced by Urban Cooperative Banks, such as technology constraints and issues regarding range of services.
Source- PIB

More Related Current Affairs View All

05 Mar

First-ever comprehensive survey of India’s river dolphins

'Prime Minister Narendra Modi released the results of the first-ever comprehensive population estimation of riverine dolphins – Gangetic and Indus dolphins – done in In

Read More

05 Mar

Arresting women at night

'The Madurai Bench of the Madras High Court in Deepa versus S. Vijayalakshmi and Others ruled that the legal provision in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which

Read More

05 Mar

Digital Personal Data Protection Act, 2023

'The Ministry of Electronics and Information Technology (MeitY) looking to wrap up public consultations on the draft Rules for the Digital Personal Data Protection Act, 2023 by Mar

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps