RBI Releases 'Regulations at a Glance' Handbook for Cooperative Banks
| Summary/Static | Details |
|---|---|
| Why in the news? | RBI's 'Regulations at a Glance': Key Insights for Cooperative Banks |
| Licensing of New Institutions | No new UCB licenses since 2004, rural cooperative bank licensing based on NABARD & RBI approval. |
| Branch Licensing FSWM | UCBs can open limited branches under automatic route; StCBs & DCCBs require NABARD & RBI approval. |
| Governance Framework | RBI applies BR Act, 1949; UCBs must have an Audit Committee; Fit & Proper criteria for directors & CEOs. |
| Credit Risk Management | Max loan against shares/bonds: ₹10 lakh (UCBs), ₹5 lakh (Rural CBs); securitization allowed only for specific institutions. |
| Interest Rate Regulations | Uniform interest rates across branches, no negotiation, NRE/NRO deposit rates cannot exceed domestic deposit rates. |
| Mergers & Amalgamations | RBI oversees voluntary amalgamations under BR Act, depositors' funds must be protected for UCB mergers. |