RBI constitutes high level panel on urban cooperative banks (UCB)

RBI constitutes high level panel on urban cooperative banks (UCB) 

The Reserve Bank of India (RBI) has constituted a high-powered panel on urban cooperative banks (UCB). It will be headed by RBI Deputy Governor R Gandhi and comprise of eight member who will be experienced bankers. They will submit its report within three months from the date of its first meeting. This high-powered panel will re-examine and recommend appropriate set of businesses, size, conversion and licensing terms for the UCB sector. The Terms of Reference of the high level panel are: Businesses: Examine the line of businesses that UCBs may be permitted to undertake and their benchmark in terms of size of business, capital requirement, regulatory regime etc. Size of UCB: Suggest the appropriate size up to which a UCB may be able to grow without undue risk to the system. Conversion Criteria & licensing terms : Suggest the criteria for allowing voluntary conversion by a UCB and examine whether the time is opportune to give license to new UCBs. Determine the modalities of implementing the suggestion of the Malegam Committee. Especially, whether the 50 per cent in value of deposits should be held by voting members. Thus, propose a feasible structure that puts majority voting in the hands of contributors of funds in UCB.

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