National Urban Co-operative Finance and Development Corporation

04.03.2024

National Urban Co-operative Finance and Development Corporation , Daily Current Affairs , RACE IAS : Best IAS Coaching in Lucknow 

Why in the news?

Union Home and Cooperation Minister Amit Shah recently inaugurated an umbrella organization for urban cooperative banks (UCB) — the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC).

Key Point

The organization had a collective strength of 11,000 branches with 1,500 banks, deposits of ₹5 lakh crore and loans totalling ₹3.50 lakh crore.

About National Urban Co-operative Finance and Development Corporation:

• It is the umbrella organization for the Urban Cooperative Banks.
• Aim: It aims to ensure specialized functions and services to cooperative banks, facilitate communication between banks and regulators and address challenges faced by Urban Cooperative Banks.
• Also to modernize and strengthen the Urban Cooperative Banking Sector, which will benefit both the banks and their customers.
• It has received a Certificate of Registration from the Reserve Bank of India to operate as a Non-Banking Finance Company
• It will also operate as a Self-Regulatory Organisation for the sector.

Key facts about Urban Cooperative Banks (UCBs)

• They are registered as cooperative societies under the provisions of either the State Cooperative Societies Act of the State concerned or the Multi State Cooperative Societies Act, 2002.
• They are regulated and supervised by the Registrar of Cooperative Societies (RCS) of the State concerned or by the Central Registrar of Cooperative Societies (CRCS), as the case may be.
• They primarily operate in urban and semi-urban regions of India.

Functions of Urban Cooperative Banks :

○These entities cater to banking requirements of small businesses, individuals, and communities.

○Services include deposit accounts, loans, remittances, and other financial products and services.

• At present, there are over 1,500 scheduled and non-scheduled Urban Cooperative Banks in India.

                                                           Source: The Hindu