Relaxations in Financial restructuring norms of Urban Cooperative Banks : Banknet India

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Relaxations in Financial restructuring norms of Urban Cooperative Banks

May 6, 2009:

In terms of existing RBI guidelines, post-restructuring, the management of the Urban Cooperative Bank should be in the hands of a Board of Administrators consisting of representatives of individual depositors as well as professional bankers to ensure proper implementation of the reconstruction scheme including recovery of NPAs.

However, RBI has reviewed and decided to dispense with the above prerequsite while considering financial restructuring proposals of UCBs.

Accordingly, management aspects will be considered on a case to case basis while considering the financial restructuring proposals of UCBs.

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