The Reserve Bank of India has issued a circular, revising the eligibility norms for the inclusion of Urban Co-operative Banks (UCBs) in the Second Schedule to the Reserve Bank of India Act, 1934.
Banking & Finance
The Reserve Bank of India has issued a circular, revising the eligibility norms for the inclusion of Urban Co-operative Banks (UCBs) in the Second Schedule to the Reserve Bank of India Act, 1934. This move comes in alignment with the Revised Regulatory Framework for UCBs released on July 19, 2022. 1. Background and Regulatory Framework Update: The circular, referenced as UBD.CO.BPD(PCB).No.20/16.05.000/2013-14 dated September 27, 2013, initially set the norms for inclusion. According to the Government of India notification F.No.3/16/2023-AC dated September 04, 2023, licensed Tier 3 and Tier 4 UCBs meeting specific criteria are eligible for inclusion.
Eligible UCBs must maintain a Capital to Risk-Weighted Assets Ratio (CRAR) of at least 3% more than the minimum requirement applicable to UCBs.
UCBs meeting the criteria are encouraged to submit their applications for inclusion in the Second Schedule.
The revised norms signify RBI’s commitment to enhancing the stability and management standards of Urban Co-operative Banks.
Founded- 1 April 1935, Kolkata
Governor- Shaktikanta Das
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