NEWS & ADVICE : CAR LOANS
RBI recommends fund for UCBs
By Vaibhav Aggarwal
Nov 19, 2009
Print    Email    RSS   

An RBI panel has suggested setting up of an emergency fund to help urban cooperative banks (UCBs) combat liquidity problems. Besides this, it has suggested to set up an umbrella organisation to provide ATM, investment banking and cash management services to these banks.

A working group headed by RBI executive director VS Das has proposed to set up an Emergency Fund Facility scheme that help banks in case they are not able to achieve their capital adequacy ratios (CAR).

According to the proposal, these loans would be available at low interest rates, around 200 basis points higher than the rate offered on the contribution. The facility would be available to the cooperative banks for a period of six months up to a year.

While the working group turned down the proposal to set up a revival fund, it favoured the setting up of an umbrella organisation to help the UCBs. It said that he organisation could be set up as a non-deposit taking, non-banking finance company.

The company would start with a paid up capital of Rs. 100 crores and authorised capital of Rs. 200 crore. The organisation could be converted to a bank later. The purpose of setting up the organisation would be to provide a wide range of services to the UCBs like credit facilities, short term liquidity and fund management services.

According to a report on trends and progress of banking in India, big UCBs have overpowered the smaller ones. Only big UCBs are growing and the smaller ones are facing threat of extinction.

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Tata Nano: How would Bank Loans look
Carnival of Indian Personal Finance Blogs #6
A chronicle of excesses by loan recovery...
Bank loans that could glitter for you
Carnival of Indian Personal Finance Blogs #1


Hello I am looking to renew my car insurance and I...
my loan no
Lonavala Caℓℓ Girℓs 9765946980 / 9970712349...

NEWS THIS WEEK
SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive