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National Urban Co-operative Finance and Development Corporation Limited

Facts for Prelims (FFP)

 

Source: NewsOnAir

 Context: The Home Minister launched the National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), serving as the umbrella organization for Urban Cooperative Banks (UCBs).

  • The initiative aims to modernize and strengthen the UCB sector, benefiting both banks and customers.

 

The National Urban Co-operative Finance and Development Corporation (NUCFDC) was established based on the recommendation of the Vishwanathan Committee on Primary (Urban) Co-operative Banks, formed by the Reserve Bank of India (RBI)

NUCFDC is registered with the RBI as a non-deposit-taking Non-Banking Financial Company (NBFC), and UCBs can voluntarily subscribe to its capital

 The key objectives of NUCFDC include expanding the number of credit societies and UCBs, facilitating dialogue between banks and regulators, providing liquidity to UCBs, establishing IT infrastructure for shared use by members to enhance service offerings, and more.