Published on: August 25, 2021



Hirara What is in news : Reserve Bank of India had appointed committee headed by N. S. Vishwanathan to make suggestions on structure for the urban cooperative banks (UCBs)

buy antabuse online usa Details :

  • Set up in February 2021
  • Why – To suggest structure on the basis of deposits, prescribed different capital adequacy as well as regulatory norms for them with respect to their sizes.


  • UCBs can be split into four categories
    • Tier-1- with deposits up to Rs 100 crore;
    • Tier-2 with deposits between Rs 100-Rs 1000 crore,
    • Tier-3 with deposits between Rs 1000 crore to Rs 10000 and
    • Tier-4 with deposits more than Rs 10000 crore.
  • Minimum Capital to Risk-Weighted Assets Ratio (CRAR) for these tiers can vary between 9 per cent to 15 per cent.While, for Tier-4 UCBs Basel III prescribed norms can be followed.
  • Separate ceilings for loan against gold ornaments, home loans and unsecured loans for different categories of UCBs.
  • Supervisory Action Framework (SAF) should follow a twin-indicator approach. It can consider only asset quality and capital measured through NNPA and CRAR, rather than going with triple indicators approach at present.
  • Consolidation of UCBs highlights that, RBI should be largely neutral to voluntary consolidation except where supervisory action is required. RBI should use the route of mandatory merger in to resolve UCBs that are not meeting with prudential requirements. It also suggests that, under Banking Regulation (BR) Act, RBI can come up with the scheme of compulsory amalgamation or reconstruction of UCBs.