Reserve Bank of India (RBI) set up a panel chaired by former RBI Deputy Governor N S Vishwanathan on Monday to draw up a plan to consolidate the urban co-operative bank sector.
The panel will have to submit their report in three months. The terms of reference of the committee said that they will be assessing the viability of consolidating the urban co-operative bank sector. According to the terms of reference, the committee will “draw up a vision document for a vibrant and resilient urban co-operative banking sector having regards to the Principles of Co-operation as well as depositors’ interest and systemic issues.”
The panel consists of eight members. They will also be considering the recent amendments to the Banking Regulation Act (1949) and will be reviewing current regulatory and supervisory approaches in urban co-op banks.
