UCBs should ensure proper credit underwriting, NPA recovery: RBI Governor

The RBI today held a Conference of Directors of UCBs in the Western Zone in Ahmedabad. The theme of the conference was 'Governance in UCBs - Driving Sustainable Growth and Stability'

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday asked urban cooperative banks (UCBs) to follow proper credit underwriting standards, review and follow up on recovery of non-performing assets to build a sound financial profile.

In his address to directors of select UCBs, the governor highlighted the critical importance of robust governance and the role of the Board of Directors to ensure the same.

He also emphasised the importance of assurance functions -- Compliance, Risk Management and Internal Audit -- in upholding good governance, the RBI said in a statement.

The central bank held a Conference of Directors of UCBs in Western Zone in Ahmedabad.

The theme of Conference was ‘Governance in UCBs- Driving Sustainable Growth and Stability’. The RBI had previously held similar conferences with the Directors of UCBs at Mumbai, Hyderabad and Lucknow in August 2023, January 2024 and April 2024, respectively.

Das also touched upon aspects of capacity building, especially with respect to IT and cyber security.

Deputy Governor Swaminathan J in his speech emphasised upon the pivotal role UCBs can play in providing last mile connectivity to the unbanked population and the consequent need to enhance their financial and operational resilience for sustenance of overall systemic stability.

Das requested UCBs to fully support and benefit from the recently established Umbrella Organisation.