RBI Governor Shaktikanta Das, during the Monetary Policy Committee meet announcements on Friday, said that an expert committee will be formed for urban co-operative banks. The expert committee will provide a medium-term roadmap to strengthen the sector.
"The Primary (Urban) Co-operative Banks are an important segment of the credit structure. The Reserve Bank has undertaken several measures in the recent past to strengthen the Urban Co-operative Banking sector and deepen financial inclusion. The recent amendments to the Banking Regulation Act, 1949 have brought near parity in regulatory and supervisory powers between Primary (Urban) Cooperative Banks and commercial banks, including those related to governance, audit and resolution. An Expert Committee (EC) will be constituted to provide a medium-term roadmap for strengthening the sector leveraging on the legislative amendments," said the RBI.
The constitution of the expert committee and its terms would be announced shortly, the apex bank said.
This is part of the additional measures announced by the RBI to revive the economy with measures relating to enhancing liquidity support to targeted sectors, regulation and supervision, deepening financial markets, upgrading payment and settlement systems and strengthening consumer protection.
"The Indian economy is poised to move in only one direction and that is upwards. It is our strong conviction, backed by forecasts, that in 2021-22, we would undo the damage that COVID-19 has inflicted on the economy. After the chaos and despair of the year gone by, through which we have sailed together and shall continue to sail ahead," said the RBI Governor.