National Urban Co-operative Finance and Development Corporation

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 (UCBs)

• 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.