- This RBI revision will apply to all Primary (Urban) Co-operative Banks with effect from 1st December 2022.
- The RBI amended the existing two-tiered framework to adopt the four-tiered regulatory framework with the objective to strengthen the financial soundness of the UCBs.
- According to the revised framework, tier-1 UCBs will have to maintain a minimum Capital Adequacy Ratio (CAR) of 9% while tier-2, tier-3, and tier-4 will maintain a minimum CAR of 12%.
- The RBI also eased the regulations for foreign branches of banks or All India Financial Institutions (AIFIs) to deal with financial products that aren’t permitted in the country.
- The RBI is India’s central bank and was established in 1935 under the RBI Act 1934 with its headquarters in Mumbai. The current Governor of it is Shaktikanta Das.
Question:
Q.1 The RBI recently amended the existing two-tiered framework related to the UCBs to?a. Single-Tier Framework
b. Three-Tier Framework
c. Four-Tier Framework
d. No Change
