The hunt for directors' special: Tough for UCBs to form board of management

Senior officials in UCBs say the central bank has not been practical in its approach

Urban co-operative banks (UCBs) with deposits of over Rs 100 crore are to set up a board of management (BoM). In FY19, you had 647 UCBs which answered to such a profile which among them had deposits of Rs 4,49,907 crore. If all these UCBs were to appoint a BoM which is to have a minimum of five members, you will need 3,235 qualified people who will also have to get the nod of the central bank.

The Reserve Bank of India (RBI) has indicated the provisions in sub-section 2 of Section 10A of the Banking Regulation Act (BR Act: 1949)