The Modi government is making efforts to transform the cooperative movement into a people’s movement

The Modi government is making efforts to transform the cooperative movement into a people's movement

New Delhi: Union Home and Cooperation Minister Amit Shah inaugurated the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), the umbrella organization of urban cooperative banks, in New Delhi today. On this occasion, Amit Shah stressed on strengthening the spirit of Cooperation among Cooperatives.

In his address, Amit Shah said that unless the strength to promote cooperation and mutual progress among cooperative institutions is provided, we cannot move forward.

He mentioned that after nearly 20 years of struggle, today the establishment of the NUCFDC is taking place, and this is a very auspicious day for all of us. The Union Cooperative Minister said, earlier the Cooperative Ministry and the cooperative sector were scattered among many ministries. He mentioned that Prime Minister Narendra Modi, after 75 years of independence, has established a separate Ministry of Cooperation, breathing new life into the cooperative sector. He stated that the cooperative movement has been given an umbrella, in the form of the Ministry of Cooperation.

Amit Shah added that for 125 years, the cooperative sector struggled and preserved its existence, but now, with the support of the government system, it will progress rapidly and achieve respect in the country’s economy. He mentioned that efforts are being made to transform the cooperative movement into a people’s movement. Minister of Cooperation emphasized that in a vast country like India, the parameter of development cannot be just numbers, it should be judged through a significant parameter of how many people participate in the country’s development.

Amit Shah said that this umbrella organization was a necessity of the time and marks a new beginning for self-regulation. He said that after the formation of this organization, the development of Urban Cooperative Banks in the country will increase manifold. He emphasized the crucial need for our credibility it is very necessary that we upgrade ourselves and adhere to all the regulations of the Reserve Bank of India. He stated that if we fail to do so, we will not be able to sustain the competition in the times to come. Amit Shah highlighted a major role for the umbrella organization, which is to prepare small banks for compliance with the BR Act. He said that our goal should be to open urban cooperative banks in every city as we move forward.

The Union Home and Cooperation Minister said that the umbrella organization should establish a system for converting credit societies that perform well in cooperative finance into banks. He mentioned that one of the objectives of NUCFDC should be to expand the services and numbers of credit societies and urban cooperative banks. There is a need to create a time-bound program on how to establish an Urban Cooperative Banks in every city. He said that to keep the cooperative movement alive, it must be made relevant and expanded. The umbrella organization will provide various facilities to small banks, facilitate dialogue between banks and regulators, and work on improving communication. He emphasized that the organization needs to work on making our boundaries broad and inclusive. He stated that if we want to expand the cooperative movement, it is the responsibility of the umbrella organization to strengthen urban cooperative banks.

Amit Shah said that it is essential to establish a clearing system for Urban Cooperative Banks to conduct business across the country. He mentioned that we currently have a collective strength of 11,000 branches of 1,500 banks, with deposits of 5 lakh crore rupees and loans totaling 3.50 lakh crore rupees.

Amit Shah said that this is a significant strength, and the goal should not only be to enhance it but also to collectively utilize it to strengthen the entire Urban Cooperative Banks system. He added that the Urban Cooperative Banks in the country have reduced their Net NPA rate to 2.10% and there is a need for further improvement. He emphasized that the umbrella organization should work hard over the next three years to lay its foundation.

The union Home minister and Minister of Cooperation stated that the organization inaugurated today is not just an umbrella organization but also a gateway to solve all our problems. He mentioned that the only way to progress in the lives of the common people is through Urban Cooperative Banks. He said that when the Prime Minister talks about becoming the world’s third-largest economy, it reflects his belief that economic development should be inclusive and comprehensive. He emphasized that if we want to move forward with this concept, we need to promote youth and startups in every village and city, and there is no way other than UCBs for this.

Amit Shah said that this umbrella organization for Urban Cooperative Banks is a security shield for small banks, which will increase the confidence of our depositors, and in the coming days, there will be further progress in our work.

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