As part of the Statement on Developmental and Regulatory Policies released along with the Monetary Policy Statement on February 05, 2021, the Reserve Bank has announced setting up of an Expert Committee on UCBs to examine the issues and to provide a road map for strengthening the sector, leveraging on the recent amendments to Banking Regulation Act, 1949 (As Applicable to Cooperative Societies).
The committee will take stock of the regulatory measures taken by the Reserve Bank and other authorities in respect of UCBs and assess their impact over last five years to identify key constraints and enablers, if any, in fulfilment of their socio-economic objective. It will also review the current Regulatory/Supervisory approach and recommend suitable measures/changes to strengthen the sector, taking into account recent amendments to the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) and suggest effective measures for faster rehabilitation / resolution of UCBs and assess potential for consolidation in the sector.
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