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Urban Cooperative Banks Can Now Turn into Small Finance Banks
June 07, 2018
This Wednesday, on the recommendation of High Powered Committee the central bank RBI decided to allow Urban Cooperative Banks (UCBs) to convert into Small Finance Banks (SFBs) through the voluntary transition.
In was August 2015 when the committee had recommended the conversion of UCBs with a business size of Rs. 20,000 crores or above into standard banks, and smaller USBs allowed to be converted into SFBs irrespective of the threshold limit. The Reserve Bank of India has acted on the same now.
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