NEW DELHI: The Reserve Bank of India (RBI) on Monday constituted an eight-member expert committee on Urban Co-operative Banks (UCBs) that is tasked with examining existing issues and provide a road map for strengthening the sector. The panel will function under the chairmanship of former RBI Governor N S Vishwanathan.
According to a statement from the RBI, the committee will take stock of the regulatory measures taken by the central bank and other authorities related to UCBs and assess their impact over the last five years. The objective will be to identify key constraints and enablers.
The primary job of the committee will be to “consider the need for differential regulations and examine prospects to allow more leeway in permissible activities for UCBs with a view to enhance their resilience”. It will also have to draw up a vision document to achieve a vibrant and resilient urban co-operative banking sector that will prioritise the “principles of cooperation as well as depositors’ interest and systemic issues”.
Aside from Vishwanathan, other members include Former NABARD Chairman Harsh Kumar Bhanwala, retired IAS officers N C Muniyappa and R N Joshi, IIM Bangalore professor M S Sriram, among others. Neeraj Nigam, Chief General Manager-in-Charge of the central bank’s Department of Regulation, will be the Convenor of the committee. The panel will submit its report within three months from the date of its first meeting.