Strengthening Urban Cooperative Banks for Resilience
RBI Deputy Governor Swaminathan J emphasized the need for enhanced governance, risk management, and technology adoption among Urban Cooperative Banks (UCBs). Speaking at a seminar, he highlighted the banks' community-centric model and the importance of maintaining depositor trust. The creation of a National Umbrella Organisation aims to support UCBs in meeting modern challenges.
- Country:
- India
The Deputy Governor of the Reserve Bank of India, Swaminathan J, has highlighted the importance of governance, risk management, and the secure adoption of technology for Urban Cooperative Banks (UCBs). Speaking at a seminar in Pune, he urged directors to focus on these areas to ensure the institutions' stability and strength.
Swaminathan praised UCBs for their community-centric approach, stating they prioritize purpose over profit. He underscored the need for trust, emphasizing that boards must prioritize long-term interests and depositor confidence. He also discussed the challenge UCBs face due to limited scale, especially in technology adoption and regulatory compliance.
To address these challenges, the National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC) has been established as an Umbrella Organisation to support UCBs. This platform aims to offer shared technology solutions and services, helping UCBs maintain competitiveness and address financial and technological needs effectively.
(With inputs from agencies.)
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