Page 3 - Urban Cooperative Banks
RBI introduces compliance function for UCBs in Tier-3 and 4 categories
The compliance function would ensure strict observance of all statutory and regulatory requirements. UCBs with deposits of more than Rs 1,000 crore fall under Tier-3 & 4 categories
 "RBI introduces compliance function for UCBs in Tier-3 and 4 categories")
RBI cancels Rupee Co-operative's licence; lender to cease business Sep 22
More than 99% of depositors of Pune-based lender to receive the full amount, says regulator
 "RBI cancels Rupee Co-operative's licence; lender to cease business Sep 22")
UCB digital push: Umbrella body NCFDC to be operational by early 2023
Customers of UCBs, including those with a single branch, will be able to access their bank accounts across two million customer touchpoints
 "UCB digital push: Umbrella body NCFDC to be operational by early 2023")
RBI should come up with on-tap licences for UCBs, says Satish Marathe
The revised guidelines on UCB proposed a four-tiered regulatory framework with differentiated regulatory prescriptions aimed at strengthening the financial soundness of the existing UCB
 "RBI should come up with on-tap licences for UCBs, says Satish Marathe")
RBI hikes capital adequacy ratio for urban cooperative banks to 12%
Rule applies to banks with deposits above Rs 100 crore; glide path till March 2026, to meet revised CAR norm in phases for UCBs that do not meet it currently
Urban co-operative banks to have four-tiered regulatory framework: RBI
An expert committee, headed by former RBI deputy governor N S Vishwanathan, had made a host of recommendations for strengthening the UCBs
 "Urban co-operative banks to have four-tiered regulatory framework: RBI")
Urban co-op banks need to focus on symmetric development: Amit Shah
Cooperation Minister Amit Shah on Thursday said urban cooperative banks need to focus on symmetric development and adopt modern banking methods to stay in competition
 "Urban co-op banks need to focus on symmetric development: Amit Shah")
PMC Bank case fallout: RBI asks UCBs to make higher provisions
The Reserve Bank on Friday issued fresh provisioning norms for urban cooperative banks' inter-bank exposure as well as valuation of their perpetual non-cumulative preference shares and equity warrants, directing them to continue making provisions to the tune of 20 per cent for such exposures. The banking regulator came up with these rules in the wake of the bankruptcy of the corruption-ridden Punjab & Maharashtra Cooperative Bank (PMC) in September 2019 and the subsequent merger of the cooperative bank with Unity Small Finance Bank, which came into effect from January 25, 2022. Earlier, similar directions were issued after the board of the largest cooperative bank was superseded by the RBI and the subsequent circulars on these matters issued on April 20, 2020 and on January 25, 2022. "UCBs shall continue to make provisions on inter-bank exposures arising from outstanding uninsured deposits, as under the April 20, 2020 circular until the actual allotment of PNCPS (Perpetual ...
 "PMC Bank case fallout: RBI asks UCBs to make higher provisions")
Growth of shadow banks poses threat to financial stability: RBI report
Balance sheet expanded but asset quality deteriorated, says RBI report
 "Growth of shadow banks poses threat to financial stability: RBI report")
Regional rural banks may also be allowed to turn into SFBs: SBI Research
In fact, some of the large RRBs are bigger than the SFBs currently operating in the market
 "Regional rural banks may also be allowed to turn into SFBs: SBI Research")
Urban cooperative banks get relief for investing in umbrella organisation
The banking regulator has exempted the UCBs from both the norms.
 "Urban cooperative banks get relief for investing in umbrella organisation")
Budget 2022: Cooperatives seek level playing field with commercial banks
Parity with commercial banks sought in tax treatment, and for deposits, loan products
 "Budget 2022: Cooperatives seek level playing field with commercial banks")
New licensing regime for UCBs on the cards after a 17-year standstill
What went unnoticed is that the RBI has been tightening the screws on UCBs for a while now
 "New licensing regime for UCBs on the cards after a 17-year standstill")
Politics vs governance
RBI's supervision of co-op banks gets a body blow
 "Politics vs governance")
Madhya Pradesh HC stays RBI notification on urban cooperative banks
The Madhya Pradesh High Court has stayed an RBI notification related to appointment and removal of managing directors and whole-time directors in Urban Cooperative Banks (UCBs) operating in states
RBI panel suggests umbrella body for helping smaller UCBs scale up
Says large UCBs that cannot function fully as a bank be treated like SFBs
 "RBI panel suggests umbrella body for helping smaller UCBs scale up")
RBI appointed panel suggests 4-tier structure for Urban Co-operative Banks
It has suggested that the minimum Capital to Risk-Weighted Assets Ratio (CRAR) for them could vary from 9 per cent to 15 per cent and for Tier-4 UCBs the Basel III prescribed norms.
New licensing regime for urban co-operative banks in the pipeline
Report of committee headed by ex-RBI deputy governor may be submitted in a fortnight
 "New licensing regime for urban co-operative banks in the pipeline")
Deposit insurance: Urban cooperative banks major beneficiaries, shows data
By March 2020, 357 urban cooperative banks (UCBs) had failed in the country, leading to payment of Rs 4,903 crore in claims
 "Deposit insurance: Urban cooperative banks major beneficiaries, shows data")
PMC Bank gets some cooperative support, but revival to take time
The takeover of this bankrupt urban cooperative bank by the Centrum-BharatPe combine marks the first instance of NBFCs, high-net worth individuals and fintechs being allowed entry in this space
 "PMC Bank gets some cooperative support, but revival to take time")