NUCFDC and IIA India Forge Strategic Alliance to Strengthen Audit and Governance in Urban Cooperative Banks
Mumbai: In a significant step towards professionalising the Urban Cooperative Banking (UCB) sector, the National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC), the Umbrella Organisation for India’s UCB sector, and the Institute of Internal Auditors India (IIA India) have signed a strategic Memorandum of Understanding (MoU). The partnership aims to reinforce internal audit standards, institutionalise governance best practices, and build long-term capacity across the UCB ecosystem.
The MoU was signed in Mumbai in the presence of Shri Prabhat Chaturvedi, CEO, NUCFDC, and Shri K. V. Mukundan, CEO, IIA India. The collaboration is set to introduce globally benchmarked audit and risk management frameworks to UCBs, in line with regulatory objectives of strengthening institutional resilience and restoring depositor trust.
Focus on Global Audit Standards and Governance
The Reserve Bank of India (RBI) has been encouraging banks to adopt risk-based internal audit mechanisms aligned with international standards, such as those issued by IIA and the Basel Committee on Banking Supervision (BCBS). Under this MoU, IIA India will work closely with NUCFDC to embed these standards into the UCB sector’s operational framework.
The scope of cooperation includes:
- Adoption of international internal audit standards tailored for UCBs.
- Strengthening internal control systems and improving transparency.
- Enhancing the professional skills of internal auditors, senior management, and compliance officers.
Access to Global Resources
Through this alliance, IIA India will provide participating UCBs with access to its extensive global knowledge base, including resources related to internal audit standards, ESG practices, and AI-driven audit and risk frameworks.
UCB officials will benefit from a range of value-added services such as:
- Access to Internal Auditor magazine.
- “Tone at the Top” leadership briefings.
- Global webinars, structured training modules, and skill-development workshops.
- Awareness programmes to improve audit quality and institutional resilience.
NUCFDC, on its part, will assist UCBs in adopting robust governance models and frameworks that promote professional and sustainable practices across the sector.
Leaders’ Perspectives
Prabhat Chaturvedi, CEO, NUCFDC, said:
“Professionalising the Urban Cooperative Banking sector lies at the core of NUCFDC’s mandate. Our partnership with IIA India enables us to elevate internal audit as a cornerstone of sound governance and sustainable institutional development for our member organizations. This partnership helps us to deliver on that promise by elevating audit rigor and transparency.”
Echoing this sentiment, Shri K V Mukundan, CEO, IIA India, stated:
“This MoU represents a significant step in enhancing governance and transparency within urban cooperative institutions. At IIA India, we remain committed to bringing globally recognised internal audit standards and best practices to the grassroots of India’s financial system, ensuring UCBs are future-ready and professionally governed.”
Strategic Timing Amid Sectoral Reforms
Key leaders from both organisations were present during the signing, including Sumit Hans (Chief Business Officer, NUCFDC), Manish Solanki (President, IIA Bombay Chapter), and Rajiv Divadkar (Chief Growth Officer, IIA India).
This strategic partnership arrives at a critical juncture as policymakers and regulators intensify efforts to professionalise and enhance the resilience of UCBs. With 2025 designated as the “International Year of Cooperatives” by the United Nations, the MoU highlights the pivotal role of UCBs in advancing grassroots financial inclusion and governance-led development.
