Sign In
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

21 Sep

India Achieves Tier 1 Status in Global Cybersecurity Index 2024

' India has secured Tier 1 status in the Global Cybersecurity Index (GCI) 2024, published by the International Telecommunication Union (ITU).' The GCI is a comprehensive assessm

Read More

21 Sep

A new White Revolution

'Operation Flood, launched in 1970, ushered in the White Revolution and transformed the dairy sector in India.' Dairy cooperatives procured 660 lakh kg of milk per day in 2023-2

Read More

21 Sep

Changes in Canada’s international work permit system

'Canadian Prime Minister Justin Trudeau announced changes to the country’s international work permit system, aiming to reduce the number of immigrant workers in Canada.'

Read More

India’s First Ai-Driven Magazine Generator

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