RBI urges urban cooperative banks to strengthen governance
The central bank cautions against use of 'innovative accounting practices' to camouflage the actual financial position.
The central bank cautions against use of 'innovative accounting practices' to camouflage the actual financial position.
Tier 4 urban cooperative banks (UCBs) – lenders with deposits above ₹10,000 crore – have been asked to appoint a chief compliance officer by April 1, 2023.
This will ensure that the loan policy reflects approved internal risk appetite, says RBI.
For tier-2, tier-3 and tier-4 UCBs, the RBI has decided to revise the minimum CRAR to 12% so as to strengthen their capital structure.