Why in news?
The Reserve Bank of India (RBI) launched Mission SAKSHAM (Sahkari Bank Kshamta Nirman), an extensive training programme aimed at enhancing the professionalism and resilience of Urban Co‑operative Banks (UCBs). The mission seeks to train about 1.40 lakh board members, senior managers and technical staff.
Background
Urban Co‑operative Banks play a vital role in providing credit and savings services to millions of urban households. However, many UCBs face governance issues, poor risk management and outdated technology. In consultation with the umbrella organisation for UCBs and state federations, the RBI designed Mission SAKSHAM to address these challenges.
Key elements
- Comprehensive training: The programme covers board governance, risk management, compliance, internal audit, information technology, cybersecurity and customer service.
- Delivery modes: Training will be conducted through classroom sessions, workshops and e‑learning modules. Materials will be available in regional languages to ensure wider participation.
- Continuous learning: The mission aims to create a self‑reinforcing learning culture where participants share best practices and mentor colleagues. It also encourages UCBs to adopt modern technology and adopt stricter compliance standards.
Significance
- Improved governance: Strengthening the capacities of board members and management will reduce instances of mismanagement and enhance accountability.
- Enhanced resilience: Better risk assessment and compliance will make UCBs more resilient to economic shocks and regulatory changes.
- Customer confidence: A professionalised UCB sector will increase public trust, encouraging financial inclusion in urban areas.
Source: Business Standard