RBI Launches Mission SAKSHAM to Train 1.4 Lakh Urban Co-operative Banking Personnel

The Reserve Bank of India (RBI) has officially launched Mission SAKSHAM (Sahkari Bank Kshamta Nirman), a nationwide, sector-wide capacity-building and certification program designed to strengthen the Urban Co-operative Banking (UCB) ecosystem.

Launched by RBI Governor Sanjay Malhotra, the initiative targets around 1.40 lakh personnel across urban cooperative banks nationwide. The program addresses longstanding structural and operational vulnerabilities in primary co-operative lenders by focusing on capability development, governance standards, and regulatory compliance.

Broad Coverage Across Critical Banking Roles

Mission SAKSHAM is structured to deliver both in-person classroom workshops and digital e-learning courses. Recognizing the linguistic diversity of grassroots institutions, the RBI indicated that training materials and delivery will be provided in regional languages to the extent feasible.

The curriculum targets personnel at various institutional levels:

• Board of Directors and Senior Management: Governance standards, strategic risk leadership, audit committee oversight, and regulatory fiduciary responsibilities.
• Control Function Leaders: Heads of risk management, statutory audit, and compliance to ensure strict adherence to banking regulations and asset classification norms.
• Technology and Operations Teams: Core banking IT infrastructure, cyber fraud prevention, customer data protection, and digital payments resilience.
• Frontline and Operational Staff: Credit appraisal, NPA monitoring, customer service, and regional compliance execution.

Collaborative Industry Framework

The initiative was designed in close consultation with the umbrella organization of urban cooperative banks—the National Urban Co-operative Finance and Development Corporation (NUCFDC)—alongside national and state cooperative federations.

The central bank had previously telegraphed the program during its February monetary policy announcements, noting that the next phase of expansion and stability in the cooperative banking space hinges directly on technical competence, managerial discipline, and internal controls rather than balance-sheet expansion alone.

Strategic Significance for Depositors and Borrowers

Urban Co-operative Banks play an essential role in India’s micro-economy by extending credit to small and medium enterprises (MSMEs), micro-borrowers, retailers, and semi-urban households. However, the sector has faced persistent dual-control complexities and regulatory scrutiny following isolated governance lapses in past years.

By instituting a continuous learning ecosystem through Mission SAKSHAM, the RBI intends to shift the UCB segment from reactive compliance to proactive risk governance. For depositors and retail investors, these regulatory and managerial upgrades are expected to significantly reduce insolvency risks and bolster overall systemic stability across regional financial markets.

Tags: Reserve Bank of India Urban Co-operative Banks Banking Sector NUCFDC Financial Inclusion