NUCFDC and CSC SPV Ink MoU to Accelerate Digital Transformation of Urban Cooperative Banks

In a landmark move towards modernising the Urban Cooperative Banking sector, the National Urban Cooperative Finance and Development Corporation Ltd (NUCFDC), the umbrella organisation for India’s Urban Cooperative Banks (UCBs), has signed a Memorandum of Understanding (MoU) with CSC e-Governance Services India Ltd. (CSC SPV). The collaboration aims to fast-track the sector’s digital transformation by equipping UCBs with secure, compliant, and future-ready digital infrastructure.

The rollout will be executed in phases, beginning with Aadhaar-based eKYC, eSign, digital signature certificates, DigiLocker integration, e-stamp services, cloud hosting, data centre management, and cybersecurity solutions. In subsequent stages, UCBs will be enabled with internet and mobile banking, kiosk-based services, and digital communication platforms to enhance accessibility and efficiency.

Under the agreement, NUCFDC will facilitate adoption across its member UCBs, while CSC SPV will provide platforms, APIs, and operational support. A joint governance team has been constituted to oversee the implementation, capacity building, and alignment with regulatory norms. The partnership also covers training, compliance support, grievance redressal, and stringent data protection measures, with an emphasis on strengthening institutional processes within the cooperative banking system.

The MoU was signed in Mumbai in the presence of Prabhat Chaturvedi, CEO, NUCFDC, and SBhagwan Patil, Group President, CSC SPV.

Commenting on the development, Prabhat Chaturvedi said: “The Urban Cooperative Banking sector needs to leapfrog into the digital era along with its legacy grassroots character. This partnership equips UCBs with future-ready digital infrastructure, enabling them to serve millions with greater efficiency, transparency, and compliance. At a time when financial inclusion and trust are central to sectoral growth, this collaboration places UCBs firmly on the path of modernisation and resilience.”

Bhagwan Patil, Group President, CSC SPV, added: “CSC SPV’s digital backbone, coupled with NUCFDC’s institutional mandate, creates a powerful technology platform for transformation of Urban Cooperative Banks. Together, we will deliver scalable solutions that strengthen the Cooperative Bank sector and also ensure last-mile citizens experience banking services with the same convenience. This is about reimagining urban cooperative banking for a digital India.”

The partnership marks a significant step towards bridging the digital divide in India’s cooperative banking ecosystem and ensuring that urban cooperative banks remain competitive and inclusive in the era of digital finance.