Updated By: LatestGKGS Desk
RBI To Set Up Board of Management For Urban Co-operative Banks
RBI To Set Up Board of Management For Urban Co-operative Banks- Details, Functions, Composition
Reserve Bank of India (RBI) has decided to set up of Board of Management (BoM) in all Urban Co-operative Banks (UCBs) those having deposits of over Rs 100 crores within one year to strengthen governance and promote professional management in these banks.
Board of Management (BoM) will be in addition to the Board of Directors (BoD). The BoD will continue to be a supreme policy-setting body and constitute various committees of the board including BoM to assist it to carry out its functions.
BoM will look after all administrative functions of UCBs as spelled out in respective Co-operatives Act. It will be responsible for credit, risk and liquidity management of UCBs.
BoM will consider loan proposals, recommend action for recovery of bad loans, implement sound internal controls and oversee compliances, among others.
BoM will be constituted by BoD. BoM will have a minimum of 3 members in UCBs having deposit size up to Rs 100 crore and 5 members in UCBs having deposit size above Rs 100 crore. The maximum number of members in BoM will not exceed 12. Not more than 50% of BoM members should be from BoD. Under all circumstances, BoM should have at least two members outside from BoD.
