Reserve Bank of India has launched Mission SAKSHAM (Sahkari Bank Kshamta Nirman), a nationwide capacity-building initiative aimed at strengthening the Urban Co-operative Banking (UCB) sector through enhanced skills, governance, and compliance culture.
Mission SAKSHAM
Mission SAKSHAM is a mission-mode, sector-wide training programme designed to build institutional capacity across UCBs through structured learning modules.
Objectives
- Enhance managerial and operational capabilities
- Improve compliance culture
- Strengthen institutional resilience
- Create a self-sustaining learning ecosystem
- Promote systemic stability and long-term growth of the UCB sector
Key Features
- Pan-India Capacity Building: Covers the entire UCB ecosystem across India
- Training Coverage: Around 1.40 lakh participants to be trained
- Target Groups:
- Board members
- Senior management
- Heads of risk, compliance, and audit
- IT and other critical function staff
- Mode of Training:
- In-person sessions
- E-learning modules
- Regional Language Delivery: Training content will be provided in regional languages wherever feasible
- Collaborative Design: Developed in consultation with
- Umbrella organisation of UCBs
- National and state cooperative federations
Urban Co-operative Banks (UCBs)
Urban Co-operative Banks are member-driven financial institutions that operate primarily in urban and semi-urban areas, playing a crucial role in financial inclusion.
Key Features
- Nature: Cooperative institutions owned and managed by members
- Operational Area: Urban and semi-urban regions
- Client Base: Small borrowers, local businesses, and underserved sections
- Number: Over 1,400 UCBs functioning in India
- Legal Status:
- Registered under State Cooperative Societies Acts or
- Multi-State Cooperative Societies Act, 2002
- Historical Evolution:
- Initially restricted to non-agricultural lending (pre-1966)
- Brought under the Banking Regulation Act, 1949 via amendment in 1966
Regulatory Framework: Dual Regulation System–
- Banking functions regulated by RBI
- Management functions governed by State/Central governments
Sector Characteristics
- Highly heterogeneous with uneven geographical spread
- Includes both:
- Small unit banks with limited reach
- Large multi-state cooperative banks
Recent Institutional Development
- Establishment of National Urban Co-operative Finance and Development Corporation (NUCFDC) in March 2024
- Focus: Digitisation, collaboration, and innovation in the sector