In a significant move for the urban cooperative banking sector, the Reserve Bank of India (RBI) has constituted a five-member committee to draft Model Bye-Laws for Urban Cooperative Banks (UCBs), reviving an exercise last undertaken by the Madhav Das Committee in 1979.
In a communication issued on Monday, RBI announced the constitution of the committee. The panel will be chaired by Dinesh Oulkar, Additional Commissioner & Special Registrar (Retd.), Cooperation Department, Government of Maharashtra.
Other members include Ganesh Dhargalkar, Advocate and Chairman of Dombivli Nagari Sahakari Bank Ltd; Kavi RCV Seshachalam, Director, TJSB Sahakari Bank Ltd; P.K. Arora, Chief General Manager (Retd.), Reserve Bank of India; and Murlee Krishna M., Deputy General Manager & Member of Faculty, College of Agricultural Banking (CAB), Pune.
RBI said the initiative stems from suggestions made by the UCB sector during a meeting with the Governor on May 12, 2023. The central bank noted that the Banking Regulation Act amendments of 2020, which extended several provisions of the Act to cooperative banks, have created the need for a fresh set of model bye-laws for the sector.
According to RBI, the proposed model bye-laws are intended to promote good governance, strengthen regulatory compliance, and facilitate capital raising by urban cooperative banks.
The committee has been mandated to discuss and finalize the draft bye-laws and submit its recommendations within three months from the date of its first meeting. RBI has also approved payment of sitting fees and admissible travelling and halting allowances to committee members for attending meetings.
The move is expected to provide a uniform governance framework for UCBs and significantly influence the future regulatory and operational structure of the sector.
