RBI forms panel for urban co-op banks

NEW DELHI: The Reserve Bank of India (RBI) has constituted an expert committee under the chairmanship of it's former Deputy Governor N.S. Vishwanathan on Primary (Urban) Co-operative Banks.

The eight-member panel will take stock of the regulatory measures taken by the Reserve Bank and other authorities in respect of urban co-operative banks (UCB) and assess their impact over the last five years to identify key constraints and enablers, if any, in fulfilment of their socio-economic objective.

It will also "review the current Regulatory/Supervisory approach and recommend suitable measures/changes to strengthen the sector, taking into account recent amendments to the Banking Regulation Act, 1949," said the RBI statement.

Along with suggesting effective measures for faster rehabilitation and resolution of UCBs and assess potential for consolidation in the sector, the committee will consider the need for differential regulations.