RBI adopts a four-tiered regulatory framework for UCBs

Press Release: 2022-2023/561, Dated: 19.07.2022

The RBI has accepted the recommendations of the committee to adopt a simple four-tiered regulatory framework with differentiated regulatory prescriptions aimed at strengthening the financial soundness of the existing UCBs. Specifically, a minimum net worth of ? 2 crores for Tier 1 UCBs operating in a single district and ? 5 crores for all other UCBs (of all tiers) has been stipulated. Certain recommendations regarding Umbrella Organization for UCB Sector are also made.

The application should contain a covering note signed by the authorized signatory of the unit mentioning the:

(a) date of permission

(b) total number of employees

(c) number of employees for whom WFH is being sought

(d) Duration for which permission for WFH is required

The attachment with the covering note should be an excel sheet containing the following columns:

(a) Name and designation of Employee availing of WFH facility

(b) SEZ ID Card No. of the employee

(c) Validity/ Expiry date of the SEZ ID Card

(d) Duration for which the permission for WFH is required (in case it is different from the general duration for which permission is sought)

A Unit, where, its employees are working from home or from any place outside the Special Economic Zone on the date of commencement of the Special Economic Zones (Third Amendment) Rules, 2022 shall submit its proposal for permission to the Development Commissioner within ninety days from the date of such commencement (i.e. July 14, 2022).

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