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Union Home Minister and Minister of Cooperation Amit Shah on Saturday inaugurated the new premises of the National Urban Cooperative Finance and Development Corporation (NUCFDC) in Mumbai and launched a series of technology and cybersecurity initiatives aimed at modernising the country’s urban cooperative banking sector.
The National Urban Cooperative Finance and Development Corporation (NUCFDC) is the umbrella organisation for Urban Cooperative Banks recognised by the Reserve Bank of India. It aims to provide technology, training, regulatory support and shared banking services to cooperative banks across the country. According to the information shared at the programme, NUCFDC has mobilised ₹306 crore in capital, and 650 of the country’s nearly 1,400 Urban Cooperative Banks had joined the organisation.
The initiatives aim to help cooperative banks adopt modern technology, improve cybersecurity, reduce operating costs and provide better banking services to customers.
1. Security Operations Centre (SOC)
A Security Operations Centre was launched to provide round-the-clock cybersecurity monitoring and support to Urban Cooperative Banks. It will help banks monitor cyber threats and strengthen the security of their digital banking services.
2. Bank in a Box
‘Bank in a Box’ is an integrated technology package designed to help even small, single-branch cooperative banks offer modern banking services without making heavy investments in technology.
It will include core banking services, digital payments, cloud services and solutions to help banks comply with regulatory requirements.
3. Partnership with National Forensic Sciences University (NFSU)
The National Urban Cooperative Finance and Development Corporation (NUCFDC) signed a Memorandum of Understanding with the National Forensic Sciences University to strengthen cybersecurity and digital forensic capabilities across the urban cooperative banking sector.
The partnership will provide access to cybersecurity training, digital forensic expertise and research facilities at affordable costs.
4. MuleHunter Software
The umbrella organisation will help cooperative banks access modern software such as MuleHunter, which can help detect suspicious transactions and potential mule accounts. Mule accounts are bank accounts used to receive or transfer money obtained through fraudulent activities.
5. Sahkar CBS
Sahkar CBS is part of the shared banking technology services being developed under the umbrella organisation. It is intended to help cooperative banks access core banking facilities without each bank having to develop and maintain its own expensive system.
6. Shared Payment Services
The umbrella organisation will provide shared payment services to help cooperative banks offer digital payment facilities to their customers more efficiently and at lower costs.
7. Sahkar Cloud
Sahkar Cloud is a shared cloud infrastructure initiative intended to help cooperative banks access technology resources without having to invest separately in expensive infrastructure.
8. Loan Origination System
A loan origination system is among the services being developed to support the loan application and processing activities of cooperative banks. It is intended to improve the way banks manage lending operations.
9. AI-Based Fraud Prevention
Artificial intelligence-based fraud prevention is another proposed service under the umbrella framework. It is intended to help cooperative banks strengthen fraud detection and improve the monitoring of suspicious activities.
10. Group Cyber Insurance
Group cyber insurance is among the services being developed to help cooperative banks manage financial risks arising from cyber incidents. A shared arrangement could make such protection more accessible to smaller banks.
11. Aadhaar-Based Services
Aadhaar-based services are included in the technology framework being developed for cooperative banks. These services are intended to support banking operations that use Aadhaar-based facilities, subject to applicable rules.
12. Automated Regulatory Compliance
The umbrella organisation also plans to provide automated regulatory compliance solutions to help cooperative banks manage reporting and comply with applicable banking regulations more efficiently.
