Mumbai — In a significant move aimed at transforming the operational strength and governance of Urban Cooperative Banks (UCBs) across India, the National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC) and the Institute of Internal Auditors India (IIA India) signed a Memorandum of Understanding (MoU) in Mumbai. The partnership is being hailed as a timely step to bring international best practices in auditing, risk management, and governance to India’s urban cooperative banking ecosystem.
The MoU was formalized by Prabhat Chaturvedi, CEO of NUCFDC, and K. V. Mukundan, CEO of IIA India, in a ceremony attended by senior officials from both institutions, including Sumit Hans, Chief Business Officer of NUCFDC, Manish Solanki, President of the IIA Bombay Chapter, and Rajiv Divadkar, Chief Growth Officer at IIA India. The strategic collaboration focuses on raising audit standards and embedding robust internal controls in UCBs—an area increasingly under the spotlight by regulators.
The Reserve Bank of India (RBI) has been pressing for enhanced governance across all tiers of banking and has advocated that cooperative banks strengthen their internal audits and adopt global standards such as those prescribed by the Basel Committee on Banking Supervision (BCBS) and the Institute of Internal Auditors (IIA). With this MoU, UCBs will now have direct access to these standards through training, knowledge sharing, and technical support facilitated by IIA India.
Through this partnership, Urban Cooperative Banks will benefit from access to global knowledge platforms, including IIA’s Internal Auditor magazine, participation in international webinars, online and on-site training programs, and workshops tailored to modern audit methodologies. The initiative also includes updates on emerging tools such as ESG (Environmental, Social, Governance) compliance audits and the integration of artificial intelligence in risk monitoring—paving the way for future-ready financial institutions.
Speaking on the occasion, NUCFDC CEO Prabhat Chaturvedi emphasized that making UCBs more professional is at the core of NUCFDC’s mandate. He said, “Strengthening audits is the foundation of ensuring transparent governance and sustainable growth. With IIA India, we are now in a stronger position to guide and support UCBs in their journey toward excellence and accountability.”
K. V. Mukundan, CEO of IIA India, called the MoU a milestone. “This collaboration is not just about improving processes. It’s about transforming the very fabric of how Urban Cooperative Banks function. We aim to take global internal audit standards to the grassroots of India’s financial system and empower institutions that directly serve millions.”
The timing of the agreement aligns with the broader theme of 2025 being celebrated as the International Year of Cooperatives. It places UCBs in the spotlight, recognizing their pivotal role in delivering inclusive banking services, particularly in semi-urban and underserved regions. With this partnership, the cooperative banking network in India is expected to become more resilient, tech-integrated, and responsive to the needs of modern-day depositors.
As India’s financial landscape evolves, this partnership is set to act as a cornerstone for institutional strengthening within the cooperative sector. Enhanced audit capabilities, advanced risk management frameworks, and continued professional education for auditors and staff are expected to collectively reinforce depositor trust and institutional stability. The MoU not only marks a significant step in capacity-building but also underlines the vital role Urban Cooperative Banks play in the grassroots development of the Indian economy.
