The National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC), the Umbrella Organisation for India’s Urban Cooperative Banking (UCB) sector, and the Institute of Internal Auditors India (IIA India) have signed a strategic Memorandum of Understanding (MoU) to reinforce internal audit standards, institutionalise governance best practices, and build long-term capacity across the UCB ecosystem.
The MoU was formally signed in Mumbai in the presence of Shri Prabhat Chaturvedi, CEO, NUCFDC, and Shri K. V. Mukundan, CEO, IIA India. The collaboration aims to introduce globally benchmarked audit and risk management frameworks to UCBs, aligning with broader regulatory objectives of strengthening institutional resilience and restoring depositor trust.
RBI guidance on risk-based internal audit encourages banks to adopt international standards of internal audit, like those issued by IIA and BCBS. Under the agreement, IIA India will support NUCFDC’s long-term mandate of improving governance frameworks within UCBs. The scope of cooperation includes adoption of international audit standards, strengthening internal control systems, and enhancing professional capabilities of internal auditors and senior management personnel.
NUCFDC will assist UCBs to adopt robust governance models and IIA India will offer participating UCBs access to its extensive global knowledge base, including resources on internal audit standards, ESG and AI-related practices in audit and risk frameworks. UCB officials will also gain access to Internal Auditor magazine, “Tone at the Top briefings”, global webinars, structured training modules, and functional workshops as well as awareness programmes designed to improve audit quality and institutional resilience across the Urban Cooperative Banking spectrum.
Shri 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 the sentiment, Shri K V Mukundan, CEO, IIA India, said, “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.”
Key leaders from both organizations also participated, including Sumit Hans (Chief Business Officer, NUCFDC) and Manish Solanki (President, IIA Bombay Chapter), Rajiv Divadkar (Chief Growth Officer, IIA India). The strategic alliance comes at a critical juncture, as policymakers and regulators intensify efforts to professionalise and strengthen the resilience of the Urban Cooperative Banking sector. As 2025 marks the UN-designated “International Year of Cooperatives”, the move underscores the crucial role of UCBs in promoting grassroots financial inclusion and governance-led development.
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About The National Urban Cooperative Finance and Development Corporation (NUCFDC)
The National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC) serves as the umbrella organization for India’s Urban Cooperative Banking (UCB) sector. Constituted with the support of the Ministry of Cooperation and in consultation with the Reserve Bank of India, NUCFDC has been mandated to explore avenues for capital mobilisation and enhance the professionalisation of the sector. It also aims to strengthen public confidence in UCBs by fostering a unified, resilient, and transparent banking framework.
About The Institute of Internal Auditors India (IIA India)
The Institute of Internal Auditors India (IIA India) is a ) is the national affiliate of IIA Inc., USA, a global standard-setting body for internal audit with presence in over 170 countries and 2,43,000+ members. IIA India promotes internal auditing and governance, risk management, and internal control excellence. IIA India with six chapters in Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Chennai, offers certifications, training, and thought leadership to build audit capacity and foster a strong ecosystem of professional internal auditors nationwide.
