National Urban Co-operative Finance and Development Corporation

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Overview:

Recently, the Union Cooperation Minister launched the National Urban Co-operative Finance and Development Corporation Limited (NUCFDC).

About National Urban Co-operative Finance and Development Corporation

  • It is the umbrella organisation 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

  • Urban Cooperative Banks (UCBs) 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 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:
    • 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.

Q1) What is a Regional Rural Bank (RRB)?

Regional Rural Banks (RRB) are Indian Scheduled Commercial Banks ( Government Banks) operating at regional level in different states of India. They have been created with a view of serving primarily the rural areas of India with basic banking and financial services.

Source: Home Minister Amit Shah launches National Urban Co-operative Finance and Development Corporation Limited in New Delhi