Correct Answer : Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) on 1 December 2022 announced a four-tiered regulatory framework for categorisation of Urban Co-operative Banks (UCBs).
* Apart from this, RBI has come out with norms pertaining to the net worth and capital adequacy of these banks.
* Based on size of deposits of the UCBs, the four-tiered regulatory framework will come into force with immediate effect. As per details, the extant regulatory framework classifies UCBs into two tiers – Tier I and Tier II.
* The RBI, in its circular, said given the heterogeneity in the cooperative sector, a tiered regulatory framework is required, adding such framework is needed to balance the spirit of mutuality and co-operation more prevalent in banks of smaller sizes and those with limited area of operation vis-a-vis the growth ambitions of the large-sized UCBs and undertake more complex business activities.
* The RBI has categorised all unit UCBs and salary earners' UCBs (irrespective of deposit size), and all other UCBs having deposits up to ₹100 crore in Tier 1.
* In Tier 2, it has placed UCBs with deposits more than ₹100 crore and up to ₹1,000 crore.
* Tier 3 will cover banks with deposits more than ₹1,000 crore and up to ₹10,000 crore.
* UCBs with deposits more than ₹10,000 crore have been categorised in Tier 4.
Source : Mint
