NUCFDC raised Rs 242.45 crore for urban cooperative banks…
The National Urban Cooperative Finance and Development Corporation (NUCFDC), the umbrella organization for urban cooperative banks, has raised a total capital of Rs 242.45 crore. With this, the organization is moving fast towards the capital target of Rs 300 crore set by the reserve bank of india (RBI).
This much amount was raised in the first phase
In this round of funding, NUCFDC raised capital from 95 banks, three state federations and National Cooperative Development Corporation (NCDC). This was the second phase of funding, in which Rs 124.50 crore was raised. The first phase was organized last year. During that time, the organization had raised Rs 118 crore from 124 banks, four state UCB federations and NCDC. With this, the National Urban Cooperative Finance and Development Corporation has received capital commitment proposals of Rs 17 crore. After completion of all the necessary formalities, the paid-up capital can increase to about Rs 260 crore.
Target to raise Rs 40 crore more
The organization has also set a target to raise an additional amount of Rs 40 crore from smaller Tier-I and Tier-II banks. Urban Co-operative Finance and Development Corporation was established in february 2024 to solve the difficulties faced by Urban Cooperative Banks (UCBs). Its objective is to provide capital support through fund based and non-fund based services, make the urban cooperative banks of india financially flexible, increase the confidence of their depositors and establish them as a major player in the country's financial system.
At present, the National Urban Co-operative Finance and Development Corporation has started many such services, which promote compliance, legal transparency and maximum use of technology among urban cooperative banks. NUCFDC is also providing legal advisory services to assist UCBs in finalising important agreements and ensuring regulatory compliance.
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