RBI to Set up Committee on Urban Co-op banks
The Reserve Bank of India (RBI) will set up an expert committee on Urban Co-operative Banks (UCBs). The committee, involving all stakeholders, will provide a medium-term road map for strengthening the sector, enable faster resolution/rehabilitation of UCBs.
- Along with enabling faster resolution of UCBs, the committee will also examine critical aspects related to the urban co-op banks.
- The provisions of the Banking Regulation (Amendment) Act, 2020 have become applicable to Primary (Urban) Co-operative Banks (UCBs) from June 26, 2020.
- The amendments have brought near parity in supervisory and regulatory powers between UCBs and commercial banks in respect of regulatory powers, including those related to governance, audit, and resolution.
- The members of the committee and its terms of reference have not been notified yet. It will be informed separately by the RBI.
Guidelines on risk-based internal audit (RBIA) framework
Recently, RBI has insisted on a Risk-based Internal Audit System and issued guidelines on the risk-based internal audit (RBIA) framework for Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).
Monetary Policy Review
In the recent monetary policy review, RBI has kept the repo rate unchanged at 4%. All other policy rates are also unchanged.