RBI extends deadline for urban co-ops by 6 months
December 27, 2020
No need for BoM after amendment in Banking Act, say bankers
The Reserve Bank of India (RBI) has extended the timeline for constitution of Board of Management (BoM) by Urban Co-operative Banks (UCBs) by six months till June 30, 2021.
The central bank has conveyed the extension in the timeline to state UCB Federations, including the Gujarat Urban Co-operative Banks Federation Ltd (GUCBFL).
While welcoming the breather for UCBs, Jyotindra M Mehta, Chairman, GUCBFL, observed that since the Banking Regulation Act has been amended, conferring greater powers on the Reserve Bank of India (RBI) in dealing with cooperative banks, the BoM requirement should be done away with.