Prabhat Chaturvedi, CEO, NUCFDC
| Photo Credit:
KSL
The National Urban Cooperative Finance and Development Corporation (NUCFDC) — an umbrella body for urban co-operative banks (UCBs) — is focusing on improving UCBs’ compliance, audit and governance standards, CEO Prabhat Chaturvedi told businessline.
“Individual banks are very prudent and take their own protective measures and regulators also keep evolving the regulations and the government also tightens things. Our focus is on how these banks can be upgraded in terms of compliance, audit and governance standards,” he said.
“How can their tech infrastructure be upgraded and how they can be helped with costly human resources. If they are not able to hire resources, we can provide to them on a sharing basis. We can train their CXOs, branch managers and implement best practices,” he added.
Depositors’ interest
Chaturvedi’s comments come months after the Reserve Bank of India (RBI) superseded the board of New India Co-operative Bank (NICB) due to material non-compliance of regulatory norms and fraud committed by the erstwhile bank employees, including senior management. Chaturvedi said while private and public sector banks and NBFCs have seen higher ticket frauds than those in the UCB sector, frauds of even the smallest amount are unacceptable at UCBs.
“Having said that, even that small number is unacceptable from a regulatory standpoint. The major worry of regulator is protection of depositors’ interest. They want to protect customers from such instances,” he added.
Further, Chautrvedi said that NUCFDC is confident of raising ₹300 crore in the current calendar year and subsequently apply for a self-regulatory organisation license with the RBI post board approval.
According to a report by NUCFDC and TransUnion CIBIL, UCBs’ portfolio balances stood at ₹2.9 lakh crore, recording a 6 per cent year-on-year (y-o-y) growth. The sector is likely to witness 6-7 per cent growth in current fiscal, per Chautrvedi.
Published on July 31, 2025
