{"id":114288,"date":"2021-06-23T12:28:36","date_gmt":"2021-06-23T06:58:36","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114288"},"modified":"2021-06-23T12:28:36","modified_gmt":"2021-06-23T06:58:36","slug":"pmc-bank-gets-some-cooperative-support-but-revival-to-take-time","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pmc-bank-gets-some-cooperative-support-but-revival-to-take-time\/","title":{"rendered":"PMC Bank gets some cooperative support, but revival to take time"},"content":{"rendered":"\n<h5><b><span data-contrast=\"auto\">What are the regulatory conditions for Urban-Cooperative Banks in India?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><b><span data-contrast=\"auto\">Context:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The\u00a0Centrum-Bharat Pe\u00a0combined and\u00a0takeover\u00a0a\u00a0bankrupt urban cooperative bank.\u00a0The\u00a0RBI\u00a0has\u00a0also\u00a0granted an \u201cin-principle\u201d approval to Centrum Financial Services and\u00a0BharatPe\u00a0to set up a small finance bank (SFB).\u00a0This\u00a0marks the first instance of\u00a0NBFCs, high-net worth individuals\u00a0and\u00a0fintech\u00a0being allowed entry in the\u00a0urban-cooperative bank (UCB)\u00a0space.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">Regulatory conditions for\u00a0urban-cooperative bank (UCB):<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"91\" aria-setsize=\"-1\" data-aria-posinset=\"205\" data-aria-level=\"1\"><span data-contrast=\"auto\">The RBI in 2019 brought UCBs with assets of Rs 500 crore and above under the Central Repository of Information on Large Credits reporting framework. These banks were also brought under the\u00a0ambit\u00a0of the prompt corrective action (PCA) architecture<\/span><b><span data-contrast=\"auto\">.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"91\" aria-setsize=\"-1\" data-aria-posinset=\"206\" data-aria-level=\"1\"><span data-contrast=\"auto\">The\u00a0RBI also made it\u00a0mandatory for UCBs with deposits of Rs 100 crore to set up a board for management with the board of directors carrying out the due diligence for their appointment.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"91\" aria-setsize=\"-1\" data-aria-posinset=\"207\" data-aria-level=\"1\"><span data-contrast=\"auto\">Further, the RBI has been aligning UCB regulation with that of mainstream banks, and has done away with dual regulation with state governments making these banks\u00a0relatively more\u00a0attractive for those with banking ambitions.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"91\" aria-setsize=\"-1\" data-aria-posinset=\"208\" data-aria-level=\"1\"><span data-contrast=\"auto\">The\u00a0amendment to the\u00a0<\/span><b><span data-contrast=\"auto\">Banking Regulation\u00a0Act (1949)<\/span><\/b><span data-contrast=\"auto\">\u00a0came into force for UCBs with effect from June 29, 2020.\u00a0Section 45 of the amendment\u00a0enables the central bank to reconstruct, or\u00a0amalgamate\u00a0a bank, with or without implementing a moratorium, with central government approval.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"91\" aria-setsize=\"-1\" data-aria-posinset=\"37\" data-aria-level=\"2\"><span data-contrast=\"auto\">The word \u201creconstruction\u201d has been given wider connotation to include mergers, acquisitions and takeovers or demergers.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"auto\">Major\u00a0Committee recommendations\u00a0regarding UCBs<\/span><\/b><span data-contrast=\"auto\">:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"auto\">In 2015\u00a0<\/span><b><span data-contrast=\"auto\">R Gandhi Committee\u00a0<\/span><\/b><span data-contrast=\"auto\">recommended\u00a0that a business size of Rs 20,000 crore can be considered as threshold for the voluntary conversion of multi-state UCBs into commercial banks<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Terms to Know:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"92\" aria-setsize=\"-1\" data-aria-posinset=\"209\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Urban-Cooperative Bank (UCB)<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"92\" aria-setsize=\"-1\" data-aria-posinset=\"210\" data-aria-level=\"1\"><span data-contrast=\"auto\">Small Finance Bank (SFB)<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"92\" aria-setsize=\"-1\" data-aria-posinset=\"211\" data-aria-level=\"1\"><span data-contrast=\"auto\">high-net worth individuals (HNIs)<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"92\" aria-setsize=\"-1\" data-aria-posinset=\"212\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Banking Regulation Act<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"92\" aria-setsize=\"-1\" data-aria-posinset=\"213\" data-aria-level=\"1\"><span data-contrast=\"auto\">NBFCs<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Source<\/span><\/b><span data-contrast=\"auto\">:\u00a0<\/span><a href=\"https:\/\/www.business-standard.com\/article\/finance\/pmc-bank-gets-some-cooperative-support-but-revival-to-take-time-121062101539_1.html\"><span data-contrast=\"none\">Business\u00a0Standard<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the regulatory conditions for Urban-Cooperative Banks in India?\u00a0 Context:\u00a0 The\u00a0Centrum-Bharat Pe\u00a0combined and\u00a0takeover\u00a0a\u00a0bankrupt urban cooperative bank.\u00a0The\u00a0RBI\u00a0has\u00a0also\u00a0granted an \u201cin-principle\u201d approval to Centrum Financial Services and\u00a0BharatPe\u00a0to set up a small finance bank (SFB).\u00a0This\u00a0marks the first instance of\u00a0NBFCs, high-net worth individuals\u00a0and\u00a0fintech\u00a0being allowed entry in the\u00a0urban-cooperative bank (UCB)\u00a0space.\u00a0\u00a0 Regulatory conditions for\u00a0urban-cooperative bank (UCB):\u00a0 The RBI in 2019 brought&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/pmc-bank-gets-some-cooperative-support-but-revival-to-take-time\/\">Continue reading <span class=\"screen-reader-text\">PMC Bank gets some cooperative support, but revival to take time<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,8043,9],"tags":[8153,8154,3992],"class_list":["post-114288","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-current-affairs-cat","category-public","tag-pmc-bank","tag-ucbs","tag-urban-cooperative-banks","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700786340,"cached_date":1704891294},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114288"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114288\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}