The Reserve Bank of India (RBI) will set up an expert committee on Urban Co-operative Banks (UCBs). The committee, involving all stakeholders, will provide a medium-term road map for strengthening the sector, enable faster resolution/rehabilitation of UCBs.
About the committee:
- Along with enabling faster resolution of UCBs, the committee will also examine critical aspects related to the urban co-op banks.
- The provisions of the Banking Regulation (Amendment) Act, 2020 have become applicable to Primary (Urban) Co-operative Banks (UCBs) from June 26, 2020.
- The amendments have brought near parity in supervisory and regulatory powers between UCBs and commercial banks in respect of regulatory powers, including those related to governance, audit, and resolution.
- The members of the committee and its terms of reference have not been notified yet. It will be informed separately by the RBI.