NS Vishwanathan panel to strengthen Urban Cooperative banks by RBI
- February 16, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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NS Vishwanathan panel to strengthen Urban Cooperative banks by RBI
Subject: Economy
Context: RBI has formed a new panel headed by deputy director NS Vishwanathan to suggest strengthening of UCBs.
Concept:
- It is to examine their issues and provide a roadmap for strengthening the sector.
- It will look into regulatory measures taken by the central bank and other authorities in respect of UCBs and assess their impact over last five years to identify key constraints and enablers.
- It will suggest suitable measures to strengthen the sector, taking into account recent amendments to the Banking Regulation Act, 1949.
- Organised under the Banking Companies Act, 1956
- They operate on a commercial basis and its main objective is profit.
- They have a unified structure and are owned by the government, state, or any private entity.
- They tend to all sectors ranging from rural to urban
About cooperative banks
- These banks are organized under the state government’s act. They give short term loans to the agriculture sector and other allied activities with the aim of social welfare.
They are organised under three levels:
- Tier 1 (State Level)
- Tier 2 (District level)
- Tier 3 (Village level)