The National Urban Cooperative Finance and Development Corporation (NUCFDC) held a high-level dialogue titled “Dialogue with Government and Regulators” on December 30, 2024, at Hotel ITC Maratha, Mumbai. The event, spearheaded by NUCFDC Chairman Jyotindra Mehta, brought together a distinguished gathering of policymakers, regulators, and leaders from the urban cooperative banking sector to discuss strategies for sustainable growth, modernization, and enhanced governance within the industry.
The dialogue was chaired by Dr. Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, and included notable participants from the government, the Reserve Bank of India (RBI), and the Registrar of Cooperative Societies. Key representatives included Pankaj Kumar Bansal, Additional Secretary, Union Ministry of Cooperation, Sandeep Kumar, Secretary (Co-operation), Gujarat; and Deepak Taware, Commissioner and Registrar from Maharashtra, among others.
Senior officials from the RBI, including Manoranjan Padhy, Chief General Manager and Prabhat Ranjan, provided critical insights into regulatory and operational frameworks.
The event also featured prominent dignitaries from the cooperative banking sector, such as Sahakar Bharati President Uday Joshi; Saraswat Bank Chairman Gautam Thakur, and leaders like Sharad Gangal, Ajay Bramhecha, Arun D. Mavinkurve, Dattaram Chalke, and Jaya C. Suvarna. Together, they represented the collective voice of Urban Cooperative Banks (UCBs) and their federations.
The agenda focused on discussing the future of UCBs, with an emphasis on the critical role of umbrella organizations such as NUCFDC in guiding the sector toward modernization and profitability.
Jyotindra Mehta outlined an ambitious roadmap to double the profits of UCBs by 2029, positioning them for long-term sustainability and competitiveness. He emphasized the urgent need for urban cooperative banks to adopt cutting-edge technologies, strengthen governance, and ensure strict regulatory compliance to thrive in an evolving financial landscape.
A key theme of the discussions was the role of the NUCFDC as a transformative force for the UCB sector. Launched earlier this year by the Ministry of Cooperation, NUCFDC is driving initiatives to support UCBs through digital transformation, compliance enhancement, governance reforms, and human resource development.
Mehta revealed plans to introduce a centralized IT platform aimed at providing secure and scalable solutions to address the cybersecurity vulnerabilities and resource constraints that many UCBs face. Additionally, the NUCFDC is working to standardize core banking solutions (CBS) across the sector, collaborating with leading CBS providers to implement cost-effective systems that meet modern cybersecurity standards.
The NUCFDC’s overarching goal is to create a unified and upgraded ecosystem where no UCB is left behind due to technological limitations or compliance failures. Mehta reiterated that the organization’s top priority is to ensure zero closures of UCBs due to these issues.
He stressed that the capital infusion required for these transformations—part of the RBI’s Rs 300 crore capital target—is progressing steadily. NUCFDC has already raised Rs 118 crore and secured commitments worth an additional Rs 56 crore, aiming to meet the remaining target by February 2025.
Beyond capital infusion, the event highlighted NUCFDC’s role in fostering collaboration among UCBs to address common challenges and build resilience. Mehta underscored that integrating all UCBs under a single umbrella organization, a globally successful model, is essential for ensuring the sector’s long-term sustainability. He called for greater alignment among stakeholders to unlock growth opportunities and modernize the sector.
The event concluded on an optimistic note, with participants reaffirming their commitment to strengthening the urban cooperative banking sector. NUCFDC’s initiatives, combined with collaborative efforts from regulators, government agencies, and industry leaders, are set to pave the way for a robust, resilient, and profitable future for UCBs in India. The dialogue underscored the collective vision of transforming the sector into a model of efficiency, innovation, and sustainability.
