RBI committee recommends for conversion of UCBs into regular banks [ Current Affairs ]
About RBI: RBI stands for Reserve Bank of India. It is central banking organization in India. It controls the financial policy of the Indian rupee. It was started on 1st April 1935 during the British Rule.
- It was nationalized on 1st January 1949.
- Its four local headquarters are at Mumbai, Kolkata, Chennai and New Delhi.
- It is a leading member of the Alliance for Financial Inclusion.
- UCB stands for Urban Cooperative Banks.
- Cooperative banking is trade and profitable banking organized on a supportive basis.
About recommendation for UCBs:
- RBI committee has recommended conversion of UCBs into regular banks with business size of 20, 000 crore rupees or more.
- RBI Deputy Governor R Gandhi gave this recommendation.
About UCBs conversation:
- For large size of UCBs, the conversion will not be compulsory.
- Large UCBs can convert themselves into commercial banks for minimize their general risks.
- Smaller UCBs with business size of less than 20, 000 crore rupees who wants to convert into Small Finance Banks can apply to the RBI.
- Licenses for conversion to operate as UCBs having a minimum record of 5 - years as a bank.
- Published on: August 25, 2015