Context:
Union Home Minister and Minister of Cooperation will launch National Urban Co-operative Finance and Development Corporation Limited (NUCFDC)
National Urban Co-operative Finance and Development Corporation Limited (NUCFDC):
- Umbrella organization for the Urban Cooperative Banks (UCB)
- Objectives – To modernize and strengthen the Urban Cooperative Banking Sector in India, ultimately benefiting both the banks and their customers
- It will ensure specialized function and services to cooperative banks, facilitate communication between banks and regulators, and address challenges faced by UCBs
- Capital – Aims to raise capital base of Rs.300 crores
- Significance – Achieving the goal of ‘Sahakar se Samriddhi’ to make ‘Aatma Nirbhar Bharat’
- Working –
- Received Certificate of Registration (CoR) from the RBI to operate as a Non-Banking Finance Company (NBFC)
- Allowed to operate as a Self-Regulatory Organization (SRO) for the sector
- Services –
- Apart from offering liquidity and capital support, it would set up a technology platform that can be shared by all UCBs, to widen their range of services at a relatively lower cost
- Offer fund management and other consultancy services
Source: PIB
Previous Year Question
With reference to “Urban Cooperative Banks” in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1. 2 and 3 only
Answer: (b)
Explanation:
Statement 1 is not correct:
Co-operative banks are regulated by the Reserve Bank of India.
