Mumbai, Divya rasthra: Urban Cooperative Banks may soon gain access to advanced banking capabilities without compromising their cooperative identity, thanks to the National Urban Co-operative Finance and Development Corporation (NUCFDC), says banking expert Dr. Rajeev Uberoi. [citation]
In his recent analysis, Dr. Uberoi, former AGM of the Reserve Bank of India, described NUCFDC as a “potential game changer” for the cooperative banking sector. He highlighted that while UCBs enjoy strong local relationships and deep community engagement, many struggle to bear the rising costs of technology, compliance, cybersecurity, and specialized professional talent.
NUCFDC’s umbrella model* seeks to address this challenge by creating economies of scale. Instead of individual banks investing separately in costly systems, they can access common platforms and shared services developed through NUCFDC.
Key projects under development include Sahakar Cloud for shared infrastructure and cybersecurity, Sahakar DigiPay for UPI-based payment services, Sahakar DigiLoan for end-to-end digital lending, and Sahakar CBS, a modern core banking platform tailored particularly for smaller UCBs. [citation]
The recently introduced “Bank in a Box” initiative is expected to further democratize access to modern banking technology by bundling core banking, digital payment, cloud, and compliance services into an affordable package.
Dr. Uberoi stressed that the sector’s transformation should preserve the traditional strengths of cooperative institutions while improving professionalism and operational efficiency. He argued that the goal is not to make cooperative banks larger but to make them “stronger, safer, smarter and professionally competitive” while retaining their cooperative character. [citation]
The article presents NUCFDC as an example of “cooperation among cooperatives,” where shared resources can help smaller institutions compete effectively in an increasingly technology-driven banking environment.
