Mission SAKSHAM (Urban Co-operative Bank Capacity Building)

• 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

1. Enhancing managerial and operational capacity 
   • Develop professional efficiency in banking operations 
2. Strengthening compliance culture 
   • Ensure better adherence to RBI norms and regulations 
3. Improving institutional resilience 
   • Enable banks to remain stable during crises 
4. Enhancing financial health 
   • Strengthen the financial position of co-operative banks 
5. 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

1. Strengthening the co-operative banking sector 
   • UCBs are vital for small businesses and the middle class 
2. Improved risk management 
   • Better training enhances risk-handling capacity 
3. Transparency and trust 
   • Improved compliance increases public confidence 
   • Reduces chances of banking frauds 
4. 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