In a move that may gladden the urban cooperative banking sector, RBI has decided to allow UCBs to declare their dividends without a nod from the apex bank if they have NPAs within control and show compliance with CRWAR norms.
According to RBI sources, a major revision of the criteria been has undertaken to make things easy. But at the same time RBI has made it clear that the UCBs should strictly follow the norms laid down by it.
RBI has warned those of the ucbs that flout its norms would attract an immediate punishment.