In a significant move, the Reserve Bank of India (RBI), on February 8, 2024, granted a Certificate of Registration to the National Urban Co-operative Finance and Development Corporation (NUCFDC). This umbrella organization (UO) will operate as a Type II non-deposit-taking Non-Banking Financial Company (NBFC) to support Urban Cooperative Banks (UCBs).
The NUCFDC aims to bolster the operational and financial resilience of UCBs through a unified technology platform. This platform will enable UCBs to offer modern banking services comparable to national-level scheduled banks, enhancing their efficiency, scalability, and customer experience.
It will also provide guidance on regulatory compliance, risk management, and best practices, ensuring financial stability while preserving self-governance.
Additionally, the NUCFDC will streamline cooperative financing, improving access to capital and resource allocation. The Ministry clarified that while the Multi-State Co-operative Societies Act governs multi-state cooperatives, it does not infringe on the constitutional authority of states over local cooperatives.