- Recently, the Reserve Bank of India (RBI) launched Mission SAKSHAM.
- It is a comprehensive capacity-building program for Urban Co-operative Banks (UCBs) aimed at strengthening their efficiency, transparency, and stability.

What is Mission SAKSHAM ?
Mission SAKSHAM (Sahakari Bank Kshamta Nirman) is an all-India, mission-mode capacity-building and certification framework designed specifically for Urban Co-operative Banks (UCBs).
It focuses on improving :
- Managerial capability
- Operational efficiency
- Regulatory compliance culture
- Institutional resilience
Key Objectives of the Mission
- Enhancing managerial and operational capacity
- Develop professional efficiency in banking operations
- Strengthening compliance culture
- Ensure better adherence to RBI norms and regulations
- Improving institutional resilience
- Enable banks to remain stable during crises
- Enhancing financial health
- Strengthen the financial position of co-operative banks
- Ensuring sustainable growth
- Promote long-term development of the UCB sector
Key Features of Mission SAKSHAM
1. Target Groups
The program targets :
- Board of Directors
- Senior Management
- Risk Management heads
- Compliance & Audit officers
- IT and other key function staff
2. Training Model
- Blended Learning Approach
- Offline (in-person) + Online (digital) training
- Available in regional languages for wider reach
3. Collaboration
The mission is implemented with support from :
- Umbrella Organisation for UCBs
- State and National Co-operative Federations
4. Mission Mode Implementation
- Large-scale training programs across the country
- Aim to bring uniform improvement nationwide
5. Certification Framework
- Participants receive certification after training
- Ensures standardization of skills and competencies
Importance of Mission SAKSHAM
- Strengthening the co-operative banking sector
- UCBs are vital for small businesses and the middle class
- Improved risk management
- Better training enhances risk-handling capacity
- Transparency and trust
- Improved compliance increases public confidence
- Reduces chances of banking frauds
- Boost to digital banking
- IT training strengthens digital services
Challenges
- Uneven development of co-operative banks across states
- Effective implementation of training programs
- Transition from traditional to modern systems
Co-operative Banks
- Co-operative banks are a part of India’s financial system based on the principle of co-operation.
- Their primary objective is community service rather than profit maximization.
- They are registered under State Co-operative Acts or the Multi-State Co-operative Societies Act, 2002 and engage in banking activities.
Classification
Co-operative banks in India are mainly divided into :
- Urban Co-operative Banks (UCBs)
- Rural Co-operative Banks (RCBs)
Ownership and Functioning
- Owned and operated by their members
- Members are also customers
- Follow the principle of “one person, one vote”
Objectives
- Provide rural and micro-finance
- Support the agriculture sector
- Promote small and cottage industries
- Assist self-employed individuals
Regulation and Supervision
- UCBs are regulated by the Reserve Bank of India (RBI)
- Rural co-operative banks are supervised mainly by NABARD and state governments
- Governed under :
- Banking Regulation Act, 1949
- Banking Laws (Application to Co-operative Societies) Act, 1965
License Cancellation
RBI may cancel the license of a co-operative bank if :
- It ceases banking operations, or
- Fails to comply with RBI regulations
Importance
- UCBs meet financial needs of small businesses and individuals
- Promote economic development in urban and semi-urban areas