Following the promise made recently by RBI Governor Shaktikanta Das, RBI announced on Monday the constitution of an Expert Committee on UCBs, which will be chaired by N S Vishwanathan, Former Deputy Governor.
There is also a representative in the Expert Committee from the co-operative sector. Nafcub President Jyotindra Mehta has been made as one of the members in the committee.
The committee comprises Chairman, six members and a convenor. Besides Vishwanathan, Harsh Kumar Bhanwala, the former Chairman of NABARD, Mukund M Chitale Chartered Accountant, retired IAS officers NC Muniyappa and RN Joshi IAS (Retired), Prof MS Sriram, IIM Bangalore, Jyotindra M. Mehta- President of NAFCUB (National Federation of Urban Cooperative Banks and Credit Societies) are the members and Neeraj Nigam- Chief General Manager-in-Charge of RBI’s Department of Regulation is convenor.
The urban cooperative banking sector is divided on the composition of an Expert Committee, announced by the RBI on Monday for the growth of urban co-op banks. While the RSS affiliated body Sahakar Bharati has welcomed the move, Maharashtra Federation Chief Vidyadhar Anaskar registered his protest raising several points.
Welcoming the committee, Sahakar Bharati National Organizing Secretary Uday Joshi said, “Sahakar Bharati Welcomes the constitution of expert committee for UCBs. The report should pave the way for the orderly growth of the UCB sector”.
Sahakar Bharati also dismissed the charge that the Committee has been partial in the sense that only one representation (Jyotindra Mehta) from the UCB sector has been included.
RBI sets up panel to suggest steps for strengthening, consolidating urban cooperative banks
Photo Credit: PTI
The Reserve Bank on Monday set up a committee to draw a vision document for strengthening urban cooperative banks (UCBs) and exploring the potential of consolidation in the sector.
The committee, to be headed by former RBI Deputy Governor N S Vishwanathan, will suggest effective measures for faster rehabilitation and resolution of Urban Cooperative Banks (UCBs) and also assess their potential for consolidation in the sector. The panel will draw up a vision document for a vibrant and resilient urban co-operative banking sector having regards to the Principles of Cooperation as well as depositors interest and systemic issues, said the terms of reference of the committee which will be required to submit its report to the RBI in three months.
RBI sets up panel to suggest steps for strengthening, consolidating urban co-operative banks
SECTIONS
Last Updated: Feb 15, 2021, 04:15 PM IST
Share
Synopsis
The panel will draw up a vision document for a vibrant and resilient urban co-operative banking sector having regards to the Principles of Cooperation as well as depositors interest and systemic issues, said the terms of reference of the committee which will be required to submit its report to the RBI in three months.
AFP
Mumbai: The Reserve Bank on Monday set up a committee to draw a vision document for strengthening urban co-operative banks (UCBs) and exploring the potential of consolidation in the sector. The committee, to be headed by former RBI Deputy Governor N S Vishwanathan, will suggest effective measures for faster rehabilitation and resolution of Urban Cooperative Banks (UCBs) and also assess their potential for consolidation in the sector.
The Reserve Bank of India (RBI) on Monday said it has constituted an eight-member expert panel to draw up a regulatory road map for urban co-operative banks (UCBs) and study the sector’s consolidation prospects.
Among the terms of reference of this committee will be to suggest effective measures for faster rehabilitation and resolution of UCBs. It has been tasked to look into regulatory measures that the central bank has taken with respect to UCBs and evaluate the impact it has had over a period of five years. It has also been asked to suggest measures to strengthen the sector after amendments to the Banking Regulation Act, 1949, which gives the central bank more teeth to supervise them. The expert committee has been asked to submit its report within three months.