Money & Banking

RBI to set up expert committee on urban co-op banks

Our Bureau Mumbai | Updated on February 05, 2021

Will provide a medium-term road map to strengthen the sector

The Reserve Bank of India (RBI) has decided to set up an expert committee on Urban Co-operative Banks (UCBs) involving all stakeholders in order to provide a medium-term road map to strengthen the sector, enable faster rehabilitation/resolution of UCBs, as well as examine other critical aspects relating to these entities.

This follows the provisions of the Banking Regulation (Amendment) Act, 2020 becoming applicable to Primary (Urban) Co-operative Banks (UCBs) with effect from June 26, 2020.

“The amendments 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.

“Consequently, a comprehensive review of regulatory/supervisory approach towards the sector is required in the light of these amendments,” Governor Shaktikanta Das said.

The constitution of the committee as well as the terms of reference will be notified separately by the RBI.

Published on February 05, 2021

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