New licensing regime for UCBs in the pipeline

Source: Business Standard What is the news? A brand-new licensing regime for urban co-operative banks (UCBs) is on the cards for financially sound and well-managed co-operative credit societies. This comes 17 years after the Reserve Bank of India (RBI) stopped issuing them.  Expected Reforms in UCBs Constituting a board of management (BoM) for UCBs with… Continue reading New licensing regime for UCBs in the pipeline

PMC Bank gets some cooperative support, but revival to take time

What are the regulatory conditions for Urban-Cooperative Banks in India?  Context:  The Centrum-Bharat Pe combined and takeover a bankrupt urban cooperative bank. The RBI has also granted an “in-principle” approval to Centrum Financial Services and BharatPe to set up a small finance bank (SFB). This marks the first instance of NBFCs, high-net worth individuals and fintech being allowed entry in the urban-cooperative bank (UCB) space.   Regulatory conditions for urban-cooperative bank (UCB):  The RBI in 2019 brought… Continue reading PMC Bank gets some cooperative support, but revival to take time

Stressed urban cooperative banks to face PCA-like curbs

News:The Reserve Bank of India has revised its supervisory framework for urban co-operative banks(UCBs) to expedite resolution of UCBs experiencing financial stress. Facts: About the revised framework: The framework imposes restrictions on urban cooperative banks(UCBs) for deterioration of financial position in line with the prompt corrective action(PCA) framework that is imposed on commercial banks. The… Continue reading Stressed urban cooperative banks to face PCA-like curbs