Speaking on the occasion of the 48th AGM of NAFCUB, held at NCUI headquarters on Saturday, former President Jyotindra Mehta said that the emergence of the Umbrella Organization (UO) on the scene has changed the character of NAFCUB from an advisory body to an action forum.
Mehta was briefing delegates on the progress made in forming the UO, which is technically known as NUCFDC. Mehta said that the UO has two aspects for them—one is emotional, and the other is operational. Emotionally, they have been dreaming for decades of having a body that would act as a bulwark for all of them, he stated.
Mehta recounted a statement made by Gautam Thakur, Chairman of the Saraswat Bank, a couple of years ago, where Thakur declared that “Co-operative is in my DNA.” Thakur was ruling out any attempt to join the privatization move. “Like Thakur’s, all of us have co-op in our DNAs, and UO is an example of the same,” said Mehta on the occasion.
Talking about the operational side, Mehta proudly announced that the UO has already become functional, with an office opened in Andheri West, Mumbai. “We have also appointed a CEO, CFO, and CTO,” announced Mehta, introducing the newly appointed officials, who were present on the occasion.
Giving updates on NUCFDC, Mehta said that by fulfilling the RBI criterion of raising Rs 100 crores from the UCB sector, NUCFDC has been able to collect Rs 118 crores from 100 UCBs, thereby qualifying to receive the Certificate of Registration (COR).
The NCDC has approved Rs 300 crores in principle for NUCFDC, but we have decided not to take more than 20% of what we collect from the sector; this will allow us to maintain our independence, Mehta added.
Mehta urged UCBs to join the UO’s bandwagon sooner rather than later, so that it can be strengthened and act as a bulwark for them. Out of 1,500 banks, only 100 UCBs have contributed so far, with just 30 making meaningful contributions.
As Chairman of NUCFDC, Mehta set a target to achieve another Rs 182 crores by December of this year, so that the overall target of Rs 300 crores can be met. “Then we can take Rs 40 crores from the NCDC,” he added.
Recounting the experience so far, Mehta noted that many UCBs operate independently, without concern for others. Large UCBs don’t tend to worry when smaller neighboring UCBs face trouble or collapse. The time has come to join hands and face the challenges of the times collectively, and the UO has been created precisely for this purpose, he stated.
It’s no small achievement that, even without NUCFDC, about 210 UCBs are over 100 years old. With NUCFDC’s help, we need to create a roadmap that ensures the sector remains unchallenged for the next 100 years, said Mehta.
“We need to double our income and break the ceiling. Currently, we have a 5% market share, but our standing with the government will improve if we increase our market share. NUCFDC will help us here by scaling up our business and guiding us on the path to growth and prosperity,” concluded Mehta.
