RBI panel recommends conversion of UCBs into regular banks

RBI panel recommends conversion of UCBs into regular banks

MUMBAI: A Reserve Bank of India panel has recommended conversion of Urban Cooperative Banks (UCBs), which have a revenue of more than Rs 20,000 crores into regular banks.

The recommendation has been made with the objective of allowing UCBs to grow and proliferate further for financial inclusion.

A high powered committee report on UCBs headed by RBI deputy governor R Gandhi, has however clarified that the conversion will not be compulsory for large UCBs and they can continue the way they operate currently in terms of balance sheet or asset size.