RBI should come up with on-tap licences for UCBs, says Satish Marathe

The recent revised guidelines on urban cooperative banks (UCBs), which was announced by the Reserve Bank of India (RBI) on Tuesday, will put these lenders on growth path, though there is a need to further liberalise the sector by offering new bank licences, said Satish Marathe, board member of the central bank.
 
The revised guidelines on UCB proposed a four-tiered regulatory framework with differentiated regulatory prescriptions aimed at strengthening the financial soundness of the existing UCB. Capital requirements of larger lenders have been increased, while branch expansion has been made automatic, among others.
 
An expert committee on UCBs