In a recent press release, the Reserve Bank of India (RBI) announced the revision of eligibility norms for the inclusion of urban co-operative banks in the second schedule of the Reserve Bank of India Act, 1934.
The move aims to bring urban co-operative banks within the purview of an updated regulatory framework.
To be considered, these banks must maintain a capital to risk weighted asset ratio of at least 3% and should be devoid of major regulatory and supervisory concerns, as per the release.
Furthermore, financially sound and well-managed licensed tier 3 and tier 4 primary (urban) co-operative banks meeting specified criteria will be eligible for inclusion.
