Statsguru: A look at the performance of UCBs as RBI gets more control

Following the Punjab and Maharashtra Co-operative Bank crisis, there has been a growing call to give more teeth to RBI in regulating such banks

Topics
Co-operative Bank | Reserve Bank of India | PMC Bank

Subrata Panda & Abhijit Lele 

Recently, the Union government took the ordinance route to give more supervisory powers to the Reserve Bank of India (RBI) over urban co-operative banks (UCBs) and multi-state co-operative banks. Following the Punjab and Maharashtra Co-operative Bank crisis, there has been a growing call to give more teeth to RBI in regulating such banks as the dual control often resulted in delayed action.

State governments also regulate co-operatives. This creates duality and attendant pressure, often leading to weak oversight. ALSO READ: Three years of GST: Still a long way to go for ...
First Published: Mon, June 29 2020. 01:14 IST