The National Federation Of Urban Cooperative Banks And Credit Societies (NAFCUB) will felicitate Union Home and Cooperation Minister Shri Amit Shah for his proactive role in addressing the longstanding demands of urban cooperative banks. The felicitation will be the main highlight of the 47th Annual General Meeting (AGM) of NAFCUB, organized at Bharat Mandapam, Pragati Maidan, New Delhi, on 12 October 2023, at 6:00 PM. NAFCUB is the apex promotional body representing urban cooperative banks in India.
Under the dynamic leadership of President Shri Jyotindra Mehta, NAFCUB will take the opportunity to express its gratitude towards Shri Amit Shah for his proactive stance in championing the cause of urban cooperative banks. More than 150 distinguished delegates representing both Scheduled and Non-Scheduled Multi State Cooperative Banks will attend the event. Representatives from some of the largest urban cooperative banks in India, including Saraswat Cooperative Bank, Cosmos Cooperative Bank, and SVC Cooperative Bank, have confirmed their participation in the event to highlight the magnitude of Minister Shah’s contributions to this vital sector.
This felicitation ceremony and AGM marks the continuation of a dialogue initiated at the first event organized by NAFCUB at Vigyan Bhawan, where various pertinent issues related to urban cooperative banks were brought to Minister Amit Shah’s attention. In the span of approximately 16 months since then, numerous longstanding concerns have been successfully addressed, greatly benefiting the sector as a whole.
One of the major achievements during this period was the inclusion of Tier 3 and Tier 4 urban cooperative banks in Schedule II of the RBI Act 1934, granting them coveted ‘Scheduled’ status. Currently, there are over 120 urban cooperative banks in Tier 3 and Tier 4 categories, with 52 already enjoying scheduled status.
Shri Amit Shah’s tenure has witnessed substantial progress in several other critical areas for urban cooperative banks. These achievements include facilitating the expansion of UCB branches, provisions for One Time Settlement (OTS) of outstanding loans, the introduction of convenient door-step banking services, and the doubling of individual housing loan limits, among others. The most recent milestone is the extension of gold loan limits, further fortifying the sector’s robustness.
NAFCUB and its member banks are deeply appreciative of Minister Amit Shah’s unwavering support and visionary leadership, which have catalyzed transformative changes in the urban cooperative banking sector. The felicitation ceremony on 12 October 2023 is a collective acknowledgment of his invaluable contributions.
The event will not only be an occasion for felicitation but also an opportunity for industry leaders, policymakers, and stakeholders to come together and celebrate the remarkable progress achieved under Minister Amit Shah’s stewardship.
The National Federation Of Urban Cooperative Banks And Credit Societies (NAFCUB) is the apex promotional organization representing urban cooperative banks in India. Established to promote collaboration, growth, and development within the sector, NAFCUB works closely with its member banks to address challenges and advance the interests of urban cooperative banking in the country.
Over the years, NAFCUB has tirelessly worked towards promoting and nurturing the growth of this vital sector. As the largest representative of the cooperative banking industry, NAFCUB has played an instrumental role in highlighting and resolving critical issues by actively engaging with the Ministry of Cooperation and the Reserve Bank of India.
Under the dynamic leadership of its President, Shri Jyotindra Mehta, and its distinguished Advisor, Shri D. Krishna, NAFCUB has been at the forefront of shaping policies that have far-reaching implications for the cooperative sector. Their inclusion in the committee constituted by the Ministry of Cooperation to frame new policies for cooperatives underscores their influential role in the sector’s development. NAFCUB has been playing an important role in influencing and shaping regulatory frameworks.
NAFCUB’s expertise and insights were sought after by senior officials of the Ministry of Cooperation, as well as the Hon’ble Minister of Union Home and Cooperation. Through regular interactions with various government and regulatory bodies, NAFCUB has played an important role in shaping policies and strategies concerning the cooperative sector.
The Reserve Bank of India recognized the significance of NAFCUB, and the RBI Governor extended a formal invitation to NAFCUB, along with other sector representatives, to provide first-hand insights on issues critical to urban cooperative banks (UCBs).
The year 2023 witnessed several significant milestones for Urban Cooperative Banks (UCBs), thanks to NAFCUB’s proactive efforts. Notable achievements include:
- Appointment of Nodal Officer for UCBs at the Central Office of RBI: This step, taken after discussions with the RBI Governor, establishes a dedicated point of contact for UCBs at the Central Office, facilitating closer coordination and focused interaction.
- Extension of Priority Sector Lending Timeframe: RBI’s decision to extend the timeframe for achieving Priority Sector/Weaker Sections lending targets by two more years, until March 31, 2026, demonstrates a forward-looking approach in supporting UCBs.
- Rationalization of Branch Authorization Policy: RBI addressed a longstanding issue related to Branch Licensing, streamlining the process and allowing FSWMBs to take an automatic route for branch openings, akin to commercial banks.
- Framework for Compromise Settlement & Technical Write-offs: An essential move by RBI to bring UCBs on par with other regulated entities in handling NPAs through compromise routes and allowing technical write-offs.
- Revaluation Reserves as Tier 1 Capital: RBI’s permission for UCBs to treat Revaluation Reserves at a discount as Tier 1 capital is a significant boost for capital adequacy and strength.
- Doorstep Banking for Senior Citizens: RBI’s approval for Door Step Banking services for senior citizens/members of UCBs aligns with the ethos of inclusivity and customer-centric services.
- Grant of Scheduled Status to Urban Cooperative Banks: A long-pending demand met, allowing financially sound and well-managed Tier 3 Banks to be included in the Second Schedule of the RBI Act 1934.
- Frequency of Holding SAC Meetings: RBI’s agreement to hold the SAC meeting twice a year is a testament to the productive engagement between NAFCUB and the regulator.
- Amendment to MSCS Act 2002 & Rules: The passage of the Multistate Amendment Bill and amended Rules will usher in prudential norms for Multistate thrift & credit societies, ensuring orderly growth.
- HR Activities and Capacity Building Programs: NAFCUB’s commitment to enhancing professionalism is evident in the 48 programs conducted for the Urban Cooperative Credit Sector, including 10 exclusively for Cooperative Credit Societies.
- Publications for Knowledge Dissemination: NAFCUB’s publications, including handbooks and newsletters, serve as valuable resources for Urban Cooperative Banks and Credit Societies, fostering knowledge-sharing and best practices.
- NUCFDC: A Milestone Achievement: The approval from RBI for the National Urban Cooperative Finance and Development Corporation (NUCFDC) to commence operations as an NBFC marks a significant achievement in the sector’s history.
- Participation in National Cooperative Policy: NAFCUB’s active participation in the committee tasked with drafting the National Cooperative Policy reflects its commitment to shaping policies that drive the cooperative movement forward.