A need was felt to establish an organization to resolve the difficulties being faced by the Urban Cooperative Banks (UCBs). UCBs are operating in a fragmented and uncoordinated environment, hindering their growth, stability and competitiveness.
The lack of regulatory clarity, operational inefficiencies and limited access to resources and expertise left many UCBs vulnerable to financial instability, poor governance and market pressures.
An Umbrella Organization named National Urban Co-operative Finance and Development Corporation (NUCFDC) has been established to address the difficulties of Urban Cooperative Banks (UCBs). NUCFDC is envisaged to provide following types of fund-based support and non fund-based services to urban cooperative banks (UCBs) which are its shareholder-members.
Capital support to UCBs as per regulations and guidelines & terms and conditions Secured credit lines on merits to UCBs to help tide over temporary liquidity mismatches Re-financing UCBs against their loans Window for emergency liquidity support to help UCBs in difficult times.
Deposits and borrowings from UCBs and financial institutions A shared IT (Information Technology) platform and support to the sector and an array of IT products and services Treasury management services Payment and settlement services and credit card services as permitted by the regulator Capacity building though training and consultancy services in operational areasHR support services to banks in the sphere of search of directors,KMPs (key managerial personnel) and staff.
Self-Regulatory Organization (SRO) role for the sector as per RBI’s guidelines.
