RBI prescribes Categorization of UCBs for Regulatory Purposes based on their deposit size

  • Blog|FEMA & Banking|News|
  • 96 Views
  • |
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 3 December, 2022

Categorization of UCBs

Circular No. RBI/2022-23/144 DOR.REG.No.84/07.01.000/2022-23, Dated 01.12.2022

The RBI has notified that Urban Co-operative Banks (UCBs) shall be categorized into following four tiers for regulatory purposes. Tier 1 shall consist of All unit UCBs and salary earners’ UCBs, and all other UCBs having deposits up to Rs. 100 crore; Tier 2 – UCBs with deposits more than Rs. 100 crore and up toRs. 1000 crore; Tier 3 – UCBs with deposits more thanRs. 1000 crore and up to Rs. 10,000 crore; Tier 4 – UCBs with deposits more than Rs. 10,000 crore.

Further, deposits shall be reckoned as per audited balance sheet as on 31st March of the immediately preceding financial year. Further, if a UCB transits to a higher Tier on account of increase in deposits in any year, it may be provided a glide path of up to a maximum of three years, to comply with higher regulatory requirements, if any, of the transited higher Tier.

Click Here To Read The Full Circular

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied