The Way forward for Regional Rural Banks

The Way forward for Regional Rural Banks Supervisory action framework for primary Urban Cooperative Banks (UCB): In January 2020, the Reserve Bank of India revised its Supervisory Action Framework (SAF) for making the functioning of UCB more effective to make desired improvement in its functioning. This was against the financial scandal & crisis faced by Punjab & Maharashtra Cooperative Bank, Mumbai, where irregularities of serious nature were reported by the Bank's officials to RBI in Sept 2019. The trigger for the SAF could be said to be as a sequel to the public outcry of depositors of PMC bank where the moratorium of 10000/ as the limit for daily withdrawal by depositors (after raising it to ₹ 50000/) took place. Besides RBI both the Mumbai police & Enforcement Directorate had jumped into the fray; as it transpired that bank officials & certain groups of borrowers had connived & defrauded the bank of several thousand crores through bogus advances. The scene ...