The Reserve Bank of India (RBI) on January 17, 2024, issued the revised eligibility norms for inclusion of UCBs in the Second Schedule to the Reserve Bank of India Act, 1934
The following has been stated namely: -
• The eligibility norms have been revised for inclusion of UCBs in the Second Schedule to the Reserve Bank of India Act, 1934 to bring them in conformity with the Revised Regulatory Framework.
• It was notified that licensed Tier 3 and Tier 4 Primary (Urban) Co-operative Banks, fulfilling the criteria stipulated for Financially Sound and Well Managed Urban Co-operative Banks by the Reserve Bank of India, subject to maintenance of minimum deposits required for categorisation as a Tier 3 Urban Co-operative Bank for two consecutive years, would be the eligible financial institutions for the purpose of sub-clause (iii) of clause (a) of sub-section (6) of section 42 of the Reserve Bank of India Act, 1934.
• Such eligible UCBs satisfying the following criteria shall be considered for inclusion in the Second Schedule:
a. CRAR of at least 3 percent more than the minimum CRAR requirement applicable to the UCB
b. No major regulatory and supervisory concerns.
• Such eligible UCBs may submit their application for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 to the concerned Regional Office of the Department of Supervision
[Notification No. RBI/2023-24/115]
