In a significant step towards harmonizing the regulatory framework for Urban Cooperative Banks (UCBs), the National Federation of Urban Cooperative Banks and Credit Societies Ltd. (NAFCUB) has constituted a high-level committee to draft Model Bye-laws for UCBs across India.
The move comes in the wake of discussions held during the 38th Standing Advisory Committee (SAC) meeting of the Reserve Bank of India (RBI) on January 23, 2025, in Mumbai.
Chaired by M. Rajeshwar Rao, Deputy Governor of RBI, the SAC meeting emphasized the urgent need for uniformity in UCB bye-laws in light of amendments to the Banking Regulation (BR) Act, 1949 in 2020 and the Multi-State Cooperative Societies (MSCS) Act, 2002 in 2023. These amendments have introduced several regulatory expectations, requiring timely and consistent compliance from cooperative banks.
Recognizing this, NAFCUB has announced the formation of a four-member committee, which will be led by Uday Joshi, Director, NAFCUB. The committee has been given a three-month timeline to draft a comprehensive set of model bye-laws that can serve as a guiding framework for UCBs nationwide.
The other members include O.P. Sharma, also a Director at NAFCUB, a representative from the Office of the Central Registrar of Cooperative Societies (CRCS), and R.D. Trivedi, Joint Registrar from the Government of Gujarat.
Reacting to the development Joshi expressed deep appreciation for the confidence reposed in him and stated, “I am honored to chair this important committee at a time when cooperative banking is undergoing pivotal regulatory changes”.
“This initiative will bring much-needed alignment and clarity to the governance structures of Urban Cooperative Banks. Our goal is to ensure that the model bye-laws are not only compliant but also forward-looking, helping UCBs grow with stability and transparency”, he added.
We will work diligently with all stakeholders to deliver within the stipulated timeline.”