RBI directs large co-op banks to report all exposures above Rs.5 crore
Reserve Bank of India (RBI) has directed large cooperative banks to report all aggregate exposures of Rs.5 crores and more to Central Repository of Information on Large Credits (CRILC). The move is aimed at early recognition of financial distress.
Earlier in its bi-monthly monetary policy review in December 2019, the RBI had announced to bring Primary (Urban) Co-operative Banks (UCBs) having total assets of Rs.500 crore and above under CRILC reporting framework maintained by the Reserve Bank.
The Aggregate exposure will include all fund-based and non-fund based exposure (such as partial credit enhancement) including investment exposure on borrower. To start with, UCBs will be required to submit CRILC report on quarterly basis with effect from 31 December 2019.
The central bank has created a CRILC of commercial banks, certain Non-Banking Financial Companies (NBFCs) and All India Financial Institutions (AIFIs) with multiple objectives, which, among others, include strengthening offsite supervision as well as early recognition of financial distress.
Categories: Economy & Banking Current Affairs