Question

Direction (11 to 13):- Read the following information to answer the questions below: Given the heterogeneity in the cooperative sector, a tiered regulatory framework was required to balance the spirit of mutuality and co-operation more prevalent in banks of smaller sizes and those with limited area of operation vis-à-vis the growth ambitions of the large-sized Urban Cooperative Banks to spread their area of operation and undertake more complex business activities. The Reserve Bank of India had constituted the Expert Committee on Urban Co-operative Banks to examine the issues in urban cooperative banking sector and to review regulatory/ supervisory approach for strengthening the sector. Based on the recommendations of the Expert Committee, RBI had released the Revised Regulatory Framework for Urban Co-operative Banks (UCBs) on July 19, 2022. Accordingly, it was decided to adopt a four-tiered regulatory framework, as against the then existing two-tiered framework, for categorization of UCBs. Going forward, this categorization would be used for differentiated regulatory prescriptions aimed at strengthening the financial soundness of the UCBs.

What is the requirement for the implementation of Core Banking Solution (CBS) for a UCB to be classified as FSWM?

Q: What is the requirement for the implementation of Core Banking Solution (CBS) for a UCB to be classi

AccordingtoRBIguidelinesforaUCBtobeclassifiedasFSWMCBSshouldbefullyimplementedThismeansthatCBSshouldcoveralloperationsandshouldbefullyimplemented

A Partially implemented CBS

B CBS should be implemented for only certain operations

C CBS should be implemented for all operations except deposit and withdrawal

D CBS fully implemented

E CBS should be implemented for all operations except loans and advances

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Question

What is the requirement for the implementation of Core Banking Solution (CBS) for a UCB to be classified as FSWM?

Solution

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