Second Schedule to the Reserve Bank of India Act, 1934 – Norms for inclusion

Summary:

Recent Notice (RBI/2023-24/115) - Revision of Eligibility Norms for Inclusion of Urban Co-operative Banks in Second Schedule to Reserve Bank of India Act, 1934.

The Reserve Bank of India has revised the eligibility norms for inclusion of licensed Tier 3 and Tier 4 Primary (Urban) Co-operative Banks in the Second Schedule to the Reserve Bank of India Act, 1934. To be eligible, banks must:

1. Fulfill the criteria for Financially Sound and Well Managed (FSWM) Urban Co-operative Banks.
2. Maintain minimum deposits required for categorization as a Tier 3 Urban Co-operative Bank for two consecutive years.
3. Meet the following criteria:
t CRAR of at least 3% more than the minimum CRAR requirement applicable to the UCB.
t No major regulatory and supervisory concerns.
4. Submit an application to the concerned Regional Office of the Reserve Bank of India along with required documents.

This revised circular supersedes the earlier circular UBD.CO.BPD(PCB).No.20/16.05.000/2013-14 dated September 27, 2013, and comes into effect from the date of issue.