Union Minister of Cooperation Amit Shah has urged Urban Cooperative Banks (UCBs) to change how they see the Reserve Bank of India (RBI). Speaking at the inauguration of the new NUCFDC office in Mumbai, he noted that the RBI is now a proactive supporter rather than just a strict regulator. He encouraged UCBs to move past old tensions and embrace new growth opportunities provided by recent policy shifts.

Shah highlighted several big wins for the sector. The RBI has recently allowed UCBs to open new branches more easily and provide doorstep banking (services at the customer's home). They can now issue demand drafts and life certificates independently. To make communication smoother, the RBI has even appointed a dedicated nodal officer (a specific point of contact) just to handle UCB matters. These banks currently hold over ₹6 lakh crore in deposits, showing their massive scale in the Indian economy.

The Minister also welcomed recent financial relaxations. These include higher limits on gold loans and the permission to offer one-time settlements (deals where a borrower pays a reduced amount to close a bad loan). Furthermore, the RBI is moving toward 'on-tap' licensing for UCBs. This means new licenses can be applied for anytime, ending a 20-year wait. This move is expected to professionalize the sector and bring in new players.

Addressing safety concerns, Shah shared his own experience as a UCB chairman in Gujarat. He argued that small borrowers are the safest for any lender. He mentioned a scheme where loans of ₹2.5 lakh were given without collateral (security against the loan). Despite initial doubts from management, the repayment rate was over 99 per cent. He believes that focusing on small entrepreneurs will help India become a developed nation.

For the bank officers attending, the move of the National Urban Cooperative Finance and Development Corporation (NUCFDC) is significant. This umbrella body is shifting its head office from New Delhi to Maharashtra. Since 70 per cent of UCBs are located in Maharashtra, Gujarat, Goa, and Karnataka, this move brings the support system closer to the heart of the business. NUCFDC will provide technical help, compliance support, and advanced cyber security solutions to its members.

Shah urged all 1,400 UCBs in India to join NUCFDC by lowering membership fees. He also pointed to a new security operations centre aimed at protecting banks from digital fraud. By joining together, Shah believes UCBs can replicate the success of brands like Amul. The goal is to create a strong, united network that supports small businesses while maintaining high standards of governance and safety.