Urban co-operative banks to have four-tiered regulatory framework: RBI

The RBI on Tuesday said it has decided to adopt a simple four-tiered regulatory framework for Urban Co-operative Banks (UCBs) based on size of deposits, with an aim to strengthen their financial soundness.

An expert committee, headed by former RBI deputy governor N S Vishwanathan, had made a host of recommendations for strengthening the UCBs.

The committee had recommended a four-tiered regulatory framework based on size of deposits of the banks and their area of operations, among other suggestions.

The differentiated regulatory approach was mainly recommended for key parameters such as net worth, Capital to Risk-weighted Assets Ratio (CRAR), branch expansion and exposure