WELCOME DELEGATES

@
4TH ALL INDIA URBAN COOPERATIVE BANKING
VIRTUAL SUMMIT 2020

JYOTINDRA BHAI MEHTA

PRESIDENT
NAFCUB 1
2
 NATIONAL
FEDERATION OF
URBAN COOPERATIVE
BANKS AND CREDIT
SOCIETIES LTD.
(NAFCUB), NEW DELHI
3
 NAFCUB is an Apex level promotional
organization of urban cooperative banks and
credit societies established in the year 1977 with
main objective of:

• promoting and strengthening the urban

cooperative credit sector comprising of UCBs and Credit
Societies of the Country.

• Interact and liaise with Ministries of Union

Government, State Governments, Reserve Bank of
India, NABARD, financial sector institutions, commercial
banks, industrial and trading sectors at national and
international levels.
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• organizing various meetings / seminars to seek
opinion from the experts / cooperators on important
issues concerning urban cooperative banks / credit
societies.

• regularly organize specialized training

programmes for the benefit of its member
institutions inclusive of urban cooperative banks
and cooperative credit societies. These institutions
meet the credit needs of the poor and marginalized
sections of the society and serve at the grass root
level.
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• Undertake studies / research projects
related to the movement.

• Organize Conferences, Conventions,

Workshops, Seminars, Round Table of CEOs
on important topics concerning the sector.

• Publication of periodicals, news bulletins

and journals and interact with media on
behalf of the sector.
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• To develop expertise in the areas of
banking, management, technology and offer
consultancy services to the member
institutions.

• To undertake all activities and discharge

all functions of a Federal Cooperative as
envisaged in section 24 of the Multi-state
Cooperative Societies.

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 ACHIEVEMENTS SO
FAR
During its 43 years of existence, NAFCUB could
achieve following milestones:

 NAFCUB has attained recognition as the “spokesman” of

the sector.

 Conferment of Scheduled Status to UCBs.

 Formation of Standing Advisory Committee (SAC) by RBI

in 1983 as the highest consultative forum.

 Constitution of Marathe Committee for liberal Branch

License Policy in 1992-93.

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 ACHIEVEMENTS SO
FAR
 Getting significant relaxation for UCBs in classification of the
investments in Government Securities.

 Convincing RBI to draw Vision Document for urban

cooperative banking sector and to encourage consultative
approach for regulation of UCBs by signing MoU with State
Governments.

 Formation of TAFCUBs in almost all the states and

encouraging for voluntary merger of UCBs to ensure non-
descriptive exit of non-viable banks.

 National launch of Core Banking Solution (CBS) for UCBs,

particularly for smaller banks at Ahmedabad on Dec. 25,
2010. 9
 ACHIEVEMENTS SO
FAR
 NAFCUB was member of all important Committees
constituted by RBI on UCBs. A few of the important
committees are:

 High Powered Committee on UCBs

 Malegaon Committee on UCBs
 Formation of Umbrella Organisation for UCBs
 Technology Support to UCBs
 Alternative avenues of raising capital by UCBs

 NAFCUB is a permanent member of College Advisory

Committee of RBI – CAB, Pune.
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 FORMATION OF UMBRELLA
ORGANIZATION (UO)
 Considering our Report, RBI granted its Regulatory
Approval on June 06, 2019 to form Umbrella
Organisation for UCBs.

 UO will play Role of Self-Regulatory Organisation

(SRO).

 UO as a non-deposit taking NBFC, may accept

deposits from its member UCBs.

 Surplus funds of UCBs can be parked with UO.

 UO will provide wide range of Fund based and Non-

Fund based services to UCBs.
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Fund based services include :
• Extend loans and advances to UCBs
• Refinance facilities
• Liquidity support against SLR securities
• Capital support to UCBs

Non-fund based activities include:

• Uniform IT platform for UCBs particularly for small
UCBs
• Consultancy services that include governance,
recruitment, regulatory compliance
• Capacity building and research & development
• Securitization services
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MAJOR ACTIVITIES
UNDERTAKEN
DURING THE YEAR
2018-19 BY NAFCUB

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COMMITTEE ON MODEL BYE-LAWS

• RBI asked NAFCUB to prepare Model

Bye-laws for Urban Cooperative Banks
for their efficient working and to
improve Governance in them.

• Model Bye-laws were drafted and

submitted to RBI for its consideration.

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 MEETINGS WITH GOVERNOR, DEPUTY
GOVERNOR AND EXECUTIVE DIRECTOR,
RBI DURING THE YEAR 2018-19
NAFCUB delegation met Shri Shaktikant
Das, Governor, Shri N. S. Vishwanathan, Deputy
Governor and Shri Sudarshan Sen, Executive
Director, RBI at its Central Office in Mumbai on
different occasions during the year to discuss
important issues concerning Urban Cooperative
Banks. 15
MEETING OF STANDING ADVISORY
COMMITTEE (SAC) OF RBI ON UCBS

NAFCUB is permanent member of RBI’s Standing

Advisory Committee (SAC) on UCBs. The meeting is
held annually to discuss important issues concerning
UCBs. A number of important issues were submitted
to RBI which were discussed in SAC meeting and
suitably resolved by RBI.

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 MEETING OF COLLEGE ADVISORY
COMMITTEE (CAC) OF COLLEGE
OF AGRICULTURE BANKING
(CAB), RBI

NAFCUB is a permanent member of CAB

and regularly organizes collaborative training
programmes with CAB to meet the capacity
building needs of the UCBs.

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 REVIEW ROLE OF
TAFCUBS
RBI has constituted a Committee with NAFCUB as its
member to relook at the present TAFCUB mechanism of
identification of unviable weak banks and arrange for their
non-disruptive exit to cover operational issues as well.

NAFCUB sought views from UCB Sector and submitted to

RBI with recommendation to enlarge the role of TAFCUBs so
that decisions on operational issues is taken at TAFCUB
levels.

It was suggested that discussions in the TAFCUB to be more

bank-specific and a more proactive role to be played in
reviving weak banks and working towards professionally
management of banks.
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 PRE BUDGET SUBMISSION TO
HON'BLE UNION FINANCE
MINISTER

In the Pre-Budget Submission, NAFCUB raised

Income Tax related issues concerning urban
cooperative banks, restoration of loans to
Directors of UCBs and enhancement in deposit
insurance cover from existing Rs. 1.00 lakh to
Rs. 5.00 lakh.
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 HUMAN RESOURCE
DEVELOPMENT

SKILL DEVELOPMENT
TRAINING PROGRAMMES

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 Physical Targets & achievements of R & D Activities for the year 2018-2019

Physical Targets No of Financial Implications

Name of Activity Amount Incurred
Targets Achieved Participants (Rs in Lakh)

R & D Activity
Manpower Development Promotional, Technical Consultancy Services & Research work
Training Programmes 20 20 625 21.72

Seminar/ Workshop/ Conference 3 3 0.26

Study Tour 1 1 23 58.79

Publications
(i) Fortnightly News letter Coop.
26 26 5.69
Banking
(ii) Quarterly Magazine Urban
4 4 4.92
Credit
Stationery, Printing Postage &
Telephone & Equipment 2.94
Maintenance

Salaries & Allowances of Staff

65.56
Associated with these Activities

Total 159.88
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 NAFCUB RECEIVED
GRANT-IN-AID OF RS.
10.00 LAKH ONLY DURING
THE YEAR, OUT OF TOTAL
EXPENSES OF RS.159.88
LAKHS, AND SPENT REST
OF MONEY FROM OUR
OWN RESOURCES.
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 DURING THE YEAR 2017-18 AND 2018-
19, MINISTRY SANCTIONED GRANT IN
THREE DIFFERENT CATEGORIES:
General Category (Other than N.E. 13.00
1.
States) lakh
15.00
2. General Category (In N.E. States)
lakh
SCSP Category in other an N.E. 10.00
3.
States lakh

 Rs.13.00 lakh in General Category was utilized in the year 2017-18

 Rs. 10.00 lakh was re-validated as Grant for the year 2018-19.

 Un-utilized amount of Rs. 15.00 lakh under the General Category in

N.E. States was refunded to Ministry along with interest in 2018-19.
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A.
SEMINAR/WORKSHOP/ROUN
D TABLE
i. During the year 2018-19, the Federation organized
a Seminar in Mumbai on 5th May, 2018 on the topic
“Digital Banking and Challenges before Urban
Cooperative Banks” which was attended by around 100
delegates from all over India.

ii. One Round Table of CEOs on the Topic “Thriving in

a Survival World” was organized on 7th September,
2018. The main topic for discussion was Formation of
Board of Management for UCBs. The Round Table was
attended by around 150 delegates of various urban
cooperative banks of the country present in the Banking
Summit.
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 B. TRAINING
PROGRAMME
The National Federation is giving top priority to
the development of human resource available at Urban
Cooperative Credit Sector. During the year, NAFCUB
conducted 23 training programmes with Reserve Bank
of India College of Agricultural Banking, Pune,
VAMNICOM Pune, National Centre for Cooperative
Education of NCUI, New Delhi against the target of 20
programmes.
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 C. STUDY VISIT

A study visit of cooperative credit

institutions in Australia and New Zealand
was organized from 23rd July to 02nd August,
2018 on self-finance basis to understand the
working of cooperative credit structure in
those countries.
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 PUBLICATIO
NS

All the issues of NAFCUB publications, quarterly

journal “Urban Credit” and fortnightly newsletter
“Coop Banking” were published during the year.

Both these publications are very popular with

subscribers and contain useful reading material.

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 PROPOSED
ACTIVITIES FOR
THE CURRENT
YEAR
I.E. 2019-2020
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 20 Training Programmes are proposed for the year
2019-2020 to:
upgrade skill and knowledge of staff of UCBs of RBI
circulars as also the provisions of B.R. Act/State
Cooperative Societies Act/Multi-State Cooperative
Societies Act
have better understanding and update urban bankers on
the developments relating to frauds, audit, technologies
taking place in UCB sector and to give them a well knitted
overview and assessment including cyber laws/IT Act etc.
So far, we have conducted 13 training programmes
and 7 more programmes will be organised in next
quarter.
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During the year 2019-2020, 4 Seminars / workshops
are proposed to be oganised at different locations.

So far, we have organised 4 Seminar and 1 Round

Table Conference fo CEOs of UCBs.

One All India Conference is planned for March

2020.

One Study Visit to cooperatively developed

country is also proposed for the year 2019-
2020.
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 During the year 2019-20, again 24 news letters,
4 magazines and 1 Reference Book for UCBs
are proposed to be published.

NAFCUB has published a Reference Book for Urban

Cooperative Banks to

facilitate urban cooperative banks and their Board of

Directors to have ready access to summary of
instructions/guidelines issued by RBI from time to time

have better understanding of instructions / guidelines /

directions issued by RBI for efficient working of UCBs.

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 COMMITTEE ON COOPERATIVE CREDIT
SOCIETIES
NAFCUB Board constituted a Committee on Cooperative Credit
Societies to:

study the provisions of The Banning of Unregulated Deposit

Schemes Ordinance, 2019 and to make suggestions on the Bill,
study the amendments proposed by Ministry of Agriculture &
Farmers Welfare in the Multi State Cooperative Societies Act,
2002 and make recommendations on the proposed
amendments in the Bill.
Issues/problems related to cooperative credit societies

First meeting of the Committee has already been held on July 8,

2019 at New Delhi.

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 R & D Activities – Physical Targets Proposed for the year 2019-20

Projected Achieved as on
Name of Activity
Targets 31.12.2019
Manpower Development Promotional, Technical
450 800
Consultancy Services & Research work

Training Programmes 20 14

Seminar/Workshop/ Conference 4 5

Study Tour 1 --

All India Conference 1 --

Publications

(i) Fortnightly News letter Coop. Banking 24 18

(ii) Quarterly Magazine Urban Credit 4 3

(iii) Books 1 1

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 PROJECTION FOR GRANT-IN-AID FOR 2019-
2020
GENERAL CATEGORY OTHER THAN NE REGION (Amount in Rs. Lakhs)

A. Manpower Development, Promotional, Technical & Consultancy Services

1. Expenses on Human Resource Development / Training

a) Specialized training programmes for development & growth of manpower of UCBs 20.00
& Credit Societies
b) On-site training programmes

2. Regulatory approval from RBI for formation of Umbrella Organization for UCBs 30.00

a) Task Force of Experts to give advice to UCBs

b) Co-ordination with State Level Federations
c) Organize seminars/workshops on the subject
d) To meet preliminary expenses for UO

3. Expenses on Management Consultancy Services of Business Solutions, 15.00

manpower planning, strategic planning, & Operational planning

a) Expert Advice
b) Meetings with State Feds. & RBI

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 PROJECTION FOR GRANT-IN-AID FOR 2019-
2020
GENERAL CATEGORY OTHER THAN NE REGION (Amount in Rs. Lakhs)

B. Stationery, Printing, Telex, Postage & Telephone Publications, Computer purchased/up gradation
1. Computerization
a) Purchase of computers
b) Up-gradation of software
15.00
c) Up-gradation of website

C. Conferences / Workshops / Seminars / Training

I. Conference - 10th All India Conference for UCBs &Credit Societies 50.00
II. Seminars/Workshops/Round Table of CEOs
a) Role of UO
b) Digital Banking
c) E-KYC & Cyber Security
d) Credit Management 20.00
e) Amendment to MSCS Act 2002
f) Leadership Development Programmes for UCBs (inclusive of SC UCBs)/Credit Societies.

Total 150.00

Less 10% being Federation’s share 15.00

135.00
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 FUND POSITION OF OUR VARIOUS ACTIVITIES
DURING THE YEAR
2018-19 ARE TABULATED BELOW:
(Amount in Rs.)

Receipts/ Payments/ FUNDS AS

ACTIVITY DETAILS Balance as Balances/
Incomes Sub-Total Expenses ON
(F.Y. 2018-19) on 01.04.2018 Surplus
during year during year 31.03.2019

BUILDING FUND 11974656 410373 12385029 0 12385029 7345071

STUDY TOUR FUND 5288871 3892434 9181305 5879286 3302019 3535919

SEMINAR/CONFERECNE
12670139 874347 13544486 568933 12975553 13668158
FUND
TRAINING FUND 1732313 2056028 3788341 2172335 1616006 2341332

CBS FUND 1726398 449898 2176296 0 2176296 5848520

TOTAL 33392377 7683080 41075457 8620554 32454903 32739000

GENERAL FUND
REVENUE INCOMES &
39443807 39443807 24119906 15323901 48707948
EXPENSES
FUNDS AS ON 31.03.2019 81446948
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 EMERGING
CHALLENGES

37
Improving Governance and Technology in UCBs

Following recent failure of one of the large Urban Cooperative

Bank, there is a need to device training programs which focus
on improving the Governance and Technology in UCBs.
Constitution of BOM has been made mandatory for UCBs
having deposit size of Rs.100 cr and above to improve their
governance. There are 607 such Banks which need specific
training.

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New draft guidelines have been issued on:-

a. Reduction in Exposer Norms for UCBs from existing

15% & 40% of capital fund to 10% & 25% of Tier I
capital.

b. Enhancement in priority sector from 40% to 75% of total

loan and advances.

c. Restricting loan size of 50% of total loan and advances

to limit Rs. 25 Lakhs.

d. Special Seminar/ workshop would the organised to

sensitize UCBs as how to achieve the above norms.
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Free Training Programs for Unit UCBs:

There are around 400 unit UCBs which are very small in size
having deposit ranging from Rs. 10 to 25 cr. They also require
special training for improving their business.

Umbrella Organization:

Special Seminar Workshop are proposed to be organized to

explain the importance of UO to UCBs.

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 There are more than 2.00 lakh employees in UCBs.

 There are around 1.5 lakh Board Members in

UCBs.

 There is a big challenge to provide training to them

to improve Governance and Professionalism in UCBs.

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In order to achieve our objectives and in view of above
challenges, we request Ministry to consider and release
Grant-in-Aid to NAFCUB as proposed.

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