Malegam to head RBI panel on new co-op bank licences

The Reserve Bank of India (RBI) set up a committee on Thursday to study the advisability of granting licences for setting up urban co-operative banks (UCB). The committee will be chaired by Y H Malegam, a renowned chartered accountant who is also on the central broad of RBI.

“The committee will review the need for organisation of new UCBs in the context of the existing legal framework for UCBs, the thrust on financial inclusion in the economic policy and proposed entry of new commercial banks into the banking space,” RBI said.

The committee will also lay down entry point norms for new UCBs and examine whether licensing could be restricted only to financially sound and well managed cooperative credit societies through conversion route.

It will also recommend the legal and regulatory structure to facilitate the growth of sound UCBs especially in the matter of raising capital consistent with cooperative principles.