In February, 2021 RBI appointed Expert Committee on Primary (Urban) Co-operative Banks under the chairmanship of NS Vishwanathan (Former RBI Deputy Governor) to examine the issues and to provide a road map for strengthening the banking sector.
Key Recommendations: Adopt a simple four-tiered regulatory framework with differentiated regulatory prescriptions aimed at strengthening the financial soundness of the existing UCBs. Specifically, a minimum net worth of Rs. 2 crore for Tier 1 UCBs operating in single district and Rs. 5 crore for all other UCBs (of all tiers) has been stipulated.
