The Hindu Business Line : Kerala, Karnataka to sign MoU with RBI on urban co-ops

TWO more States - Kerala and Karnataka - are likely to sign the Memorandum of Understanding with Reserve Bank of India, with regard to urban co-operative banks, said Mr B. Vijayakumar, Chairman, National Federation of Urban Co-operative Bank Ltd.

Following the signing of the MoU, a state-level Task Force on Urban Co-operative Banks will be set up in each State to regulate the working of and to strengthen UCBs.

After the MoU is signed, RBI will be bound to consult the TAFCUB before cancelling the licence of any bank, in those States, Mr Vijayakumar said.

He was speaking on the sidelines of the national conference on UCBs organised by the Maharashtra Chamber of Commerce, Industry and Agriculture.

Dr A.R. Kidwai, Governor of Haryana, who inaugurated the seminar, said unless co-operative banks were given functional autonomy, they could not survive. "Mr K.R. Ananda, Chief General Manager, in-charge UCBs, RBI, said that licences for new branches would be given only after a comprehensive policy for regulation of UCBs was put in place.

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Kerala, Karnataka to sign MoU with RBI on urban co-ops