The RBI on Monday constituted a committee to prepare an approach letter to strengthen urban cooperative banks. The committee, headed by former RBI Deputy Governor NS Vishwanathan, will suggest measures to address the issue of UCBs. It will also assess their prospects for their strong position in the region.
According to the terms and conditions assigned to the committee, it has to prepare a vision letter for a dynamic and strong urban cooperative bank sector. All this will be done keeping in mind the interests of the depositors and issues related to the system along with the cooperation. The committee has to submit its report to the RBI in three months.
The eight-member committee also includes Harsh Kumar Bhanwala, former chairman of NABARD (National Bank for Agriculture and Rural Development). The committee will also review the existing regulatory and monitoring arrangements and make suggestions for strengthening the sector.