CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has decided to implement system-based asset classification in urban co-operative banks (UCBs), prescribing a timeline based on their asset size.

Detailed explanation-2: -The Reserve Bank regulates and supervises the banking functions of UCBs under the provisions of Banking regulation Act, 1949(AACS).

Detailed explanation-3: -Reserve Bank of India. The Urban Banks Department of the Reserve Bank of India is vested with the responsibility of regulating and supervising primary (urban) cooperative banks, which are popularly known as Urban Cooperative Banks (UCBs).

Detailed explanation-4: -’System-based asset classification’ would mean asset classification (downgrading as well as upgrading) carried out by the CBS / computerized systems of the bank in an automated manner on an ongoing basis, based on the relevant RBI instructions/guidelines.

Detailed explanation-5: -The scheduled primary (urban) cooperative banks are required to maintain with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5 per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of India Act, 1934.