
Cooperative banks will need RBI approval for CEO appointment
In an attempt to strengthen its supervisory control over the Urban co-operative banks (UCBs) the Reserve Bank on Friday said that UCBs with deposit base over Rs 100 crore will require prior approval of RBI for appointment of their CEOs. After capping lending to a single borrower and raising the priority sector lending requirements for UCBs, the RBI in its final guidelines on constitution of Board of management in UCBs, said that UCBs with deposit size of Rs 100 crore and above, will also require prior approval of RBI for appointment of their CEOs. The central bank’s announcement is significant considering its supervision practices came in for criticism after a gross violation of lending norms by a better run UCB- PMC Bank as a result of which the bank is under an RBI appointed administrato...