Dual Control Hits Effective Ucb Supervision

The Reserve Bank of India (RBI) today said it would be difficult to make the supervisory system effective, if the issue of dual control of urban co-operative banks (UCBs) was not resolved soon.

Drawing attention to the present system of dual/triple regulatory and supervisory control (involving the Centre, states and RBI), the central bank in its mid-term review of the monetary and credit policy, said it is neither conducive to the efficient functioning of the co-operative banks, nor in the interest of their depositors.