Page 2 - Urban Cooperative Banks

RBI announces 4-tiered regulatory framework for urban cooperative banks

The Reserve Bank of India (RBI) on Thursday announced a four-tiered regulatory framework for categorisation of Urban Co-operative Banks (UCBs), Besides, the central bank has come out with norms pertaining to the net worth and capital adequacy of these banks. The four-tiered regulatory framework, based on size of deposits of the UCBs, will come into force with immediate effect. The extant regulatory framework classifies UCBs into two tiers -- Tier I and Tier II. In a circular, the RBI said given the heterogeneity in the cooperative sector, a tiered regulatory framework is required. Such a framework is needed to balance the spirit of mutuality and co-operation more prevalent in banks of smaller sizes and those with limited area of operation vis-a-vis the growth ambitions of the large-sized UCBs and undertake more complex business activities. "... it has been decided to adopt a four-tiered regulatory framework, as against the existing two-tiered framework, for categorisation of UCBs

Top headlines: Disinvestment target, RBI imposes penalty on 9 UCBs & more

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RBI imposes monetary penalties on nine urban cooperative banks

The bank regulator has fined two banks each from Odisha, Madhya Pradesh, and Gujarat, and one bank each from Chhattisgarh, Maharashtra, and Jharkhand

Maharashtra appoints liquidator to wind up Rupee Cooperative Bank

Over 200 employees risk losing their jobs

Bharti Axa Life, Accel infuse over Rs 111 cr as equity in Shivalik SFB

The SFB, an urban coop bank earlier, has a large presence in UP and MP; It has over 560,000 unique customers and runs 46 branches and 21 exclusive Business Correspondent Branches across northern India

RBI cancels the licence of Pune-based Seva Vikas Co-operative Bank

Seva Vikas Co-operative Bank lacked adequate capital and earning prospects.

Rajasthan govt approves financial assistance of Rs 100 crore for MSMEs

This scheme was announced in the state Budget 2022-23 to promote micro, small, and medium enterprises (MSMEs), and give loans on easy terms for small businesses and investors

RBI asks urban cooperative banks to appoint compliance chiefs by April 2023

RBI said this directive should be placed in the immediate next meeting of the Board of Directors for information

RBI introduces compliance function for UCBs in Tier-3 and 4 categories

The compliance function would ensure strict observance of all statutory and regulatory requirements. UCBs with deposits of more than Rs 1,000 crore fall under Tier-3 & 4 categories

RBI cancels Rupee Co-operative's licence; lender to cease business Sep 22

More than 99% of depositors of Pune-based lender to receive the full amount, says regulator

UCB digital push: Umbrella body NCFDC to be operational by early 2023

Customers of UCBs, including those with a single branch, will be able to access their bank accounts across two million customer touchpoints

RBI should come up with on-tap licences for UCBs, says Satish Marathe

The revised guidelines on UCB proposed a four-tiered regulatory framework with differentiated regulatory prescriptions aimed at strengthening the financial soundness of the existing UCB

RBI hikes capital adequacy ratio for urban cooperative banks to 12%

Rule applies to banks with deposits above Rs 100 crore; glide path till March 2026, to meet revised CAR norm in phases for UCBs that do not meet it currently

Urban co-operative banks to have four-tiered regulatory framework: RBI

An expert committee, headed by former RBI deputy governor N S Vishwanathan, had made a host of recommendations for strengthening the UCBs

Urban co-op banks need to focus on symmetric development: Amit Shah

Cooperation Minister Amit Shah on Thursday said urban cooperative banks need to focus on symmetric development and adopt modern banking methods to stay in competition

PMC Bank case fallout: RBI asks UCBs to make higher provisions

The Reserve Bank on Friday issued fresh provisioning norms for urban cooperative banks' inter-bank exposure as well as valuation of their perpetual non-cumulative preference shares and equity warrants, directing them to continue making provisions to the tune of 20 per cent for such exposures. The banking regulator came up with these rules in the wake of the bankruptcy of the corruption-ridden Punjab & Maharashtra Cooperative Bank (PMC) in September 2019 and the subsequent merger of the cooperative bank with Unity Small Finance Bank, which came into effect from January 25, 2022. Earlier, similar directions were issued after the board of the largest cooperative bank was superseded by the RBI and the subsequent circulars on these matters issued on April 20, 2020 and on January 25, 2022. "UCBs shall continue to make provisions on inter-bank exposures arising from outstanding uninsured deposits, as under the April 20, 2020 circular until the actual allotment of PNCPS (Perpetual ...

Growth of shadow banks poses threat to financial stability: RBI report

Balance sheet expanded but asset quality deteriorated, says RBI report

Regional rural banks may also be allowed to turn into SFBs: SBI Research

In fact, some of the large RRBs are bigger than the SFBs currently operating in the market

Urban cooperative banks get relief for investing in umbrella organisation

The banking regulator has exempted the UCBs from both the norms.

Budget 2022: Cooperatives seek level playing field with commercial banks

Parity with commercial banks sought in tax treatment, and for deposits, loan products