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N. S. Vishwanathan Panel on Urban Co-operative Banks
August 26 , 2021
1115 days
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- The Reserve Bank of India had appointed committee headed by N. S. Vishwanathan to make suggestions on structure for the urban cooperative banks (UCBs).
- This Panel was set up to suggest structure on the basis of deposits, prescribed different capital adequacy as well as regulatory norms for them with respect to their sizes.
Recommendations by panel
- As per this committee, UCBs can be split into four categories. They are,
- Tier-1- with deposits up to Rs 100 crore;
- Tier-2 with deposits between Rs 100-Rs 1000 crore,
- Tier-3 with deposits between Rs 1000 crore to Rs 10000 and
- Tier-4 with deposits more than Rs 10000 crore.
- It suggests that, minimum Capital to Risk-Weighted Assets Ratio (CRAR) for these tiers can vary between 9 per cent to 15 per cent.
- While, for Tier-4 UCBs the Basel III prescribed norms can be followed.
- It suggests separate ceilings for loan against gold ornaments, home loans and unsecured loans for different categories of UCBs.
- The Supervisory Action Framework (SAF) should follow a twin-indicator approach.
- It can consider only asset quality and capital measured through NNPA and CRAR, rather than going with triple indicators approach at present.
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