Classification of Urban Co-operative Banks (UCBs) as Financially Sound and Well Managed (FSWM)


The RBI, vide its’ Circular UBD.CO.LS.(PCB).Cir.No.24/07.01.000/2013-14 dated October 1,fifa 15 ps3 coins 2013 had laid out the criteria for FSWM Banks. 

Modifying its earlier instructions, vide Circular UBD.CO.LS(PCB) Cir.No.20/07.01.000/2014-15 dated October 13, 2014, fifa cheapest coins RBI has revised the eligibility the criteria for UCBs to be classified under FSWM category. 

Accordingly, UCBs fulfilling the following criteria would henceforth be termed as FSWM: 

(a) CRAR of not less than 10 per cent; fifa coin cheap

(b) Gross NPA of less than 7 % and Net NPAs of not more than 3%;
 
(c) Net profit for at least three out of the preceding four years subject to it not 
having incurred a net loss in the immediate preceding year;

(d) No default in the maintenance of CRR / SLR during the preceding financial 
year; 

(e) Sound internal control system with at least two professional directors on the 
Board; buy fifa coins

(f) Core Banking Solution (CBS) fully implemented; and

(g) Regulatory Comfort 

     
Regulatory Comfort has been clarified to mean such UCBs should have a proven record of compliance with the provisions of Banking Regulation Act, 1949 (AACS), Reserve Bank of India Act, 1934 and the instructions / directions issued by RBI from time to time i.e. the bank should have an impeccable record of regulatory cheap fifa 15 coins xbox compliance and no warning letter / cautionary advice should have been issued to or monetary penalty imposed on the bank on account of violation of RBI directives /  fifa coins 2014 guidelines during the preceding three financial years.

By reviewing the earlier instructions,Fifa 15 coins the RBI has laid out the guidelines for imparting transparency and removing any unintended element of subjectivity in classifying an UCB as ‘Financially Sound and Well Managed’ or otherwise. This has wide reaching implications for UCBs since number of permissions are required from RBI like for opening of on-site / off-site / mobile ATMs, applications under Annual Business Plans (ABP) such as opening new branches, extension of area of operation, shifting of premises, etc. While procedures have been simplified for FSWM Banks, rigorous scrutiny of applications takes place in case of other Banks.best place to buy fifa coins  Urban Banks which fit in the criteria for FSWM Banks can fast track their expansion plans and implement them speedily otherwise huge time is lost in obtaining permissions from the Regulator. Hence this development augurs well for well managed Banks. Further, fifa coins sale these instructions can motivate managements of other Banks to streamline their Regulatory Compliance and get out of the Regulatory Monitoring by striving to fit into this criteria. This may also help reduce bureaucratic red tape in RBI. 

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By :-

CA GOKUL B. RATHI
Partner :
G. B. Rathi & Co.
Chartered Accountants
Karve Road, Pune – 411004
98500 41311