Context: 

Recently, the Union Home and Cooperation Minister, started the National Urban Cooperative Finance and Development Corporation Limited in New Delhi.

About NUCFDC: An Umbrella Body For Urban Cooperative Banks

• National Urban Cooperative Finance and Development Corporation Limited is an umbrella body for Urban Cooperative Banks.
• It supports the goal of ‘Sahakar se Samriddhi‘ to promote self-reliance in India.
• Objective: Its aim is to modernize and reinforce the Urban Cooperative Banking Sector.
• Features: It will also function as a Self-Regulatory Organization for the sector.
  • It will offer specialized functions and services to cooperative banks.
    • It will facilitate communication between banks and regulators, and tackle challenges encountered by Urban Cooperative Banks (UCBs).
  • Certificate of Registration (CoR) from RBI: This umbrella body has been granted a Certificate of Registration by the Reserve Bank of India to operate as a Non-Banking Finance Company (NBFC).
• Significance:
• • Economic Growth: It aims to support the urban cooperative banking sector. By doing this, it helps small farmers and other weaker sections indirectly in the expansion of their economic activities. 
  • Facilitates Policy Making: Since NUCFDC acts as a coordinating unit between banks and regulators, it helps state and central government in making policy based on the ground reality of the sectors. 
  • Financial Assistance to UCB: It aims to raise capital and intends to use the capital to support Urban Cooperative Banks and develop a shared technology platform.

Benefits

• Technological advancement: This organization aims to incorporate new technology in the urban Cooperative Banking Sector which will help in fast coverage of the work. 
• Technological platform: It will Provide a technology platform that will improve service offerings, reduce costs, and address technology constraints.

News Source: AIR

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