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Cooperative Banking

Eligible Tier-3 & Tier-4 UCBs will get scheduled status

Eligible Tier-3 & Tier-4 UCBs will get scheduled status
“To further strengthen the Urban Cooperative Banks, the Government of India has allowed licensed Tier-3 and Tier-4 primary (urban) co-operative banks, to be eligible to be included in schedule II of the Reserve Bank of India Act 1934 and get ‘Scheduled’ status, subject to fulfillment of criteria stipulated by RBI. The Government has allowed licensed Tier-3 and Tier-4 UCBs, fulfilling the criteria stipulated for ‘Financially Sound and Well Managed Urban Co- operative Banks’ by the RBI, subject to maintenance of minimum deposits required for categorization as a Tier-3 Urban Co-operative Banks for two consecutive years, to be eligible to be included in Schedule II of the RBI Act and get ‘Scheduled’ status,” stated Deputy Secretary Kumar Ram Krishna of the Union Ministry of Cooperation, in a letter released last Friday.

The letter is addressed to the chief secretaries, cooperation secretaries, registrars of cooperative societies of all the states and UTs as well as to MDs and CEOs of UCBs, state cooperative banks, district central cooperative banks and others.

Krishna released a letter to this effect after a meeting with Jyotindra Mehta, President, NAFCUB, at his office. The letter further reads, “This is to kindly inform that in order to realize the vision of ‘Sahakar-se- Samriddhi’ envisaged by the Prime Minister, several important initiatives have been taken under the leadership of the Union Minister of Home and Cooperation.”

Jyotindra Mehta said, “Due to acceptance of our long-pending demand, now more UCBs will get Scheduled Status.” Jyotindrabhai thanked the Union Cooperation Minister Amit Shah for his proactive initiatives.

Those UCBs which have deposits of more than Rs 1,000 crore and up to Rs 10, 000 crore are regarded as Tier-3 UCBs. UCBs, with deposits more than Rs10,000 crore, are regarded as Tier-4 UCBs. There are currently 84 UCBs in Tier-3 and Tier-4 categories. As many as 52 UCBs are already scheduled.

PR Newswire

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