Urban cooperative banks (UCB) are getting more regulatory relaxations. The Reserve Bank of India (RBI) has extended the deadline for meeting their priority sector lending (PSL) norms.
Moreover, those who have already met the targets would be suitably rewarded. They will also be allowed to resolve stressed assets the same as commercial banks are allowed.
The Reserve Bank of India (RBI) has given Indian urban cooperative banks more regulatory flexibility by extending the meeting deadline for their priority sector lending targets and providing rewards for those that already meet them. RBI has decided to expand the scope of the framework for resolution of stressed assets so that compromise settlements and technical write-offs can be executed to resolve non-performing assets which was an option only for the commercial banks.
