RBI Direction for Large Co-op Banks

Published on December 28, 2019
Current context: The Reserve Bank of India (RBI) has directed (Urban) Co-operative Banks (UCBs) to report all exposures of Rs 5 crore and more to the CRISIL.
RBI Direction for Large Co-op Banks

  • The move has been taken by RBI with the aim of early detection of financial distress.
  • The Co-operative Banks (UCBs) having total assets of Rs 500 crore and above as on 31st March of the previous financial year shall report credit information, including classification of an account as Special Mention Account (SMA), on all borrowers having aggregate exposures of Rs 5 crore.
  • Special Mention Account (SMA) is an account which is exhibiting signs of incipient stress resulting in the borrower defaulting in timely servicing of her debt obligations, though the account has not yet been classified as NPA as per the extant RBI guidelines.
  • The RBI has created a Central Repository of Information on Large Credits (CRILC) of commercial banks, all India financial institutions and certain non-banking financial companies.
  • CRILC was formed with multiple objectives but primarily includes:
    1. Strengthening offsite supervision
    2. Early recognition of financial distress
  • The RBI had announced to bring UCBs with assets of Rs 500 crore and above under the CRILC reporting framework in its fifth Bi-monthly Monetary Policy Statement, 2019-20 announced on December 05, 2019.
  • As per the direction, UCBs will be required to submit CRILC report on a quarterly basis with effect from 31st December 2019.

Question: 

Q.1 RBI has directed all (Urban) Co-operative Banks (UCBs) having total assets of _________ and above as on 31st March of the previous financial year to report exposures on all borrowers having aggregate exposures of ____________ and more to the CRILC?
a. Rs 300 crore, Rs 3 crore
b. Rs 400 crore, Rs 4 crore
c. Rs 500 crore, Rs 5 crore
d. Rs 600 crore, Rs 6 crore

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ramandeep singh

My name is Ramandeep Singh. I authored the Quantitative Aptitude Made Easy book. I have been providing online courses and free study material for RBI Grade B, NABARD Grade A, SEBI Grade A and Specialist Officer exams since 2013.

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