RBI to ease norms for UCBs

RBI is planning to revise norms for Urban Cooperative Banks. The new rules will harmonize eligibility for business permissions. Large UCBs meeting certain criteria may expand operations beyond their state. They can extend to a maximum of two states per year with RBI approval

- PRESS TRUST OF INDIA

The Reserve Bank of India (RBI) Monday proposed to replace the existing norms for urban cooperative banks (UCBs) with a harmon-ised eligibility criteria for certain business authorisations, permissions and approvals.

The apex bank has proposed that large UCBs (falling in Tier 3 and Tier 4 categories) which are in compliance with eligibility criteria for business authorisation (ECBA) and having a minimum assessed net worth (ANW) of ₹50 crore may extend their area of operation beyond the state of registration, subject to prior approval of the Reserve Bank.