Current Context: Reserve Bank of India has taken the decision to implement system-based asset clarification in urban co-operative banks (UCBs).
- The decision is taken to improve efficiency, transparency and integrity on the clarification process of assets in UCBs.
- Under this, asset clarification will be carried out by core banking solution and computer-based system in an automatic manner by following RBI’s guidelines.
- As per the decision, RBI has said that UCBs will have to implement system-based asset clarification with an effect from 30th June 2021.
- The UCBs who are having total assets of Rs 1000 crore and above but less than Rs 2000 crore (as on 31st March 2020) and are self-assessed under Level III or Level IV on ‘ Comprehensive Cyber Security Framework for UCBs- A Graded Approach’ is strictly mandated to implement it from 30th September 2021.
- As per the released guidelines, UCBs are required to implement system-based asset clarification within a period of 6 months from the concerned financial year-end.
- UCBs who are not in the above criteria of prescribed assets value will have to voluntarily implement this system based asset clarification in their own interest.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
