Integration Of Urban Cooperative Banks A Comparative Regulatory & Functional Review:
PARC Suggestion To Reserve Bank Of India Committee.

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Banking System acts as a backbone to the country’s economy. While commercial banks have the role of driving the economy, co-operative banks are more focused on the financial upliftment of the grassroots section of society. However, RBI in its “Trends & Progress report 2019-2020 determined that the co-operative sector faced the collapse of larger UCBs due to fraud and deficient governance.

In a view to comprehend and improve the weakening situation of urban co-operative banks,

The Government of India introduced ‘Banking Regulation (amendment) 2020’. This amendment allowed RBI to acquire regulatory powers over UCBs. In this context, RBI formed an expert committee under the chairmanship of ex-deputy governor N.S. Vishwanathan to resolve the issues faced by the co-operative sector. PARC, in consultation with stakeholders involved in the co-operative banking, has provided RBI expert committee with recommendations to address the issues. Please read the following document to see the recommendations.

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