RBI constitutes high level panel on urban cooperative banks (UCB)
The Reserve Bank of India (RBI) has constituted a high-powered panel on urban cooperative banks (UCB).
It will be headed by RBI Deputy Governor R Gandhi and comprise of eight member who will be experienced bankers. They will submit its report within three months from the date of its first meeting.
This high-powered panel will re-examine and recommend appropriate set of businesses, size, conversion and licensing terms for the UCB sector.
The Terms of Reference of the high level panel are:
- Businesses: Examine the line of businesses that UCBs may be permitted to undertake and their benchmark in terms of size of business, capital requirement, regulatory regime etc.
- Size of UCB: Suggest the appropriate size up to which a UCB may be able to grow without undue risk to the system.
- Conversion Criteria & licensing terms : Suggest the criteria for allowing voluntary conversion by a UCB and examine whether the time is opportune to give license to new UCBs.
- Determine the modalities of implementing the suggestion of the Malegam Committee. Especially, whether the 50 per cent in value of deposits should be held by voting members. Thus, propose a feasible structure that puts majority voting in the hands of contributors of funds in UCB.
Categories: Business, Economy & Banking