As a step to enhance the profile of urban cooperative banks (UCBs), Reserve Bank of India today prescribed revised norms to categorise UCBs as Financially Sound and Well Managed (FSWM) banking entities. These norms are applicable with immediate effect.
For categorising themselves as FSWM category banks, the capital adequacy ratio should be atleast one per cent above the minimum CRAR applicable to an UCB as on the reference date. Also, net non-performing Assets (NPAs) should not be more than three per cent.
They should have reported Net profit for at least three out of the preceding four years. They should not have