RBI Released a new report regarding your bank, if you follow these conditions…

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RBI Bank working Days: All agency banks will remain open on Saturday-Sunday, know details
RBI Bank working Days: All agency banks will remain open on Saturday-Sunday, know details
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Committee headed by NS Vishwanathan submits report on Primary Urban Cooperative Banks RBI asks for recommendations from stakeholders

The committee formed on urban cooperative banks has submitted its report to RBI. Now the central bank has sought suggestions from common citizens and all stakeholders on this. The RBI had announced the formation of the committee in February this year.


The committee constituted by RBI regarding primary (urban) cooperative banks has submitted its report. Giving information about this on the official website of RBI today, suggestions have also been sought from common citizens and stakeholders. Common citizens and stakeholders can submit their responses on the report by 30 September 2021. These suggestions will also be looked into by the RBI before taking a final decision on the recommendations of the committee.

On February 5 this year, the Reserve Bank of India issued a statement regarding developmental and regulatory policies along with monetary policy.

Along with this, the Reserve Bank had announced the formation of an expert committee under the leadership of former Deputy Governor NS Vishwanathan on Primary (Urban) Co-operative Banks.

The responsibility of this committee was to prepare a roadmap for this sector by understanding the problem of these banks. For this, the recent amendments in the Banking Regulation Act, 1949 were also to be kept in mind.

What are the recommendations of the committee
The committee headed by former RBI Deputy Governor NS Vishwanathan has suggested setting up of an umbrella institution with a minimum capital of Rs 300 crore. This institute will act as a self-regulating unit for the urban co-operative banks.

Later it can be converted into Universal Bank by the member banks. One-time grant from RBI may also be considered for providing information technology support to this institute.

What is the recommendation regarding other conditions including net worth?
The RBI committee has recommended that urban co-operative banks can be regulated on a 4-tier basis. This tier will be decided on the basis of their deposit. Banks operating in any one district should have a minimum net worth of at least Rs 2 crore. The net worth of the banks included in the first tier should be at least Rs 5 crore.

The minimum CRAR of these banks should be 9 to 14 percent. Apart from this, some conditions will also be fixed. These banks can open 10 additional branches in a district if regulatory conditions are met.

 

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