Amit Shah launches NUCFDC, sets target to establish one urban cooperative bank in each town
Amit Shah on Saturday launched the National Urban Cooperative Finance and Development Corporation (NUCFDC) and asked the umbrella body to set up one urban cooperative bank in each town. He also said urban cooperative banks should upgrade themselves to provide ATM facility, credit/debit cards, clearing system, maintain SLR (statutory liquidity ratio) limit and refinancing.
NUCFDC has received the RBI approval to function as a non-banking finance company and a self-regulatory organisation for the urban cooperative banking sector.
After launching NUCFDC, Shah said, «After 20 years, NUCFDC has been established. This is the need of the hour. I am happy the RBI has given approval for this.»
The minister said he felt the absence of an umbrella organisation when he had an opportunity to work with National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) when there was a crisis in Gujarat.
Some urban cooperative banks would not have suffered losses if there was NUCFDC, he added.
Shah mentioned that there were several deliberations and even reports, including from the Vishwanathan Committee emphasised the need of an umbrella body for urban cooperative banks.
«I am confident there will be multi-fold growth in the urban cooperative banking sector with the setting up of NUCFDC,» he added.
Highlighting the wider role of NUCFDC, Shah said urban cooperative banks have been operating in India for a long time, but could not grow rapidly even though they can play a key role in the country's economic growth,
