Comments
The Reserve Bank of India (RBI) has set up an eight-member expert committee to examine the issues and to provide a road map for strengthening the urban co-operative banking (UCB) sector, including suggesting effective measures for faster rehabilitation/ resolution of these banks and assess potential for consolidation in the sector.
The committee, headed by NS Vishwanathan, former Deputy Governor, RBI, will leverage on the recent amendments to the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) to review the current regulatory/supervisory approach and recommend suitable measures/changes to strengthen the sector.
The committee will take stock of the regulatory measures taken by the central bank and other authorities in respect of UCBs. It will assess the impact of these measures over last five years to identify key constraints and enablers, if any, in fulfilment of their socio-economic objective.
The panel will consider the need for differential regulations and examine prospects to allow more leeway in permissible activities for UCBs with a view to enhance their resilience.
Vision document
It will draw up a vision document for a vibrant and resilient urban co-operative banking sector having regards to the Principles of Cooperation as well as depositors’ interest and systemic issues.
The committee will submit its report within three months from the date of its first meeting.
Besides Vishwanathan, the other members of the committee are: Harsh Kumar Bhanwala, former Chairman, NABARD; Mukund M Chitale, Chartered Accountant; NC Muniyappa and RN Joshi (both retired IAS officers); MS Sriram, Professor, IIM Bangalore; Jyotindra M Mehta, President, NAFCUB; and Neeraj Nigam, Chief General Manager-in-Charge, Department of Regulation, RBI.
The amendments to the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) have brought near parity in regulatory and supervisory powers between UCBs and commercial banks in respect of regulatory powers, including those related to governance, audit and resolution.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.