Issue and Regulation of share capital and securities - Primary (Urban) Cooperative Banks - Draft circular for comments

Last updated: 15 July 2021

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The Reserve Bank of India has released a draft circular concerning the issue and regulation of share capital and securities for Primary (Urban) Co-operative Banks (UCBs). This follows amendments to the Banking Regulation Act, 1949, which came into effect for UCBs in June 2020. Comments on this draft circular are welcomed from UCBs and other stakeholders by August 31, 2021. Additionally, feedback is sought on whether similar regulations are needed for State Co-operative Banks and District Central Co-operative Banks.

The Banking Regulation (Amendment) Act, 2020 (No. 39 of 2020), notified in the Gazette of India on September 29, 2020 (vide Notification No. 64 of that date), and deemed to have come into force with effect from June 29, 2020 for Primary (Urban) Co-operative Banks (UCBs), has inter alia, made amendments in the Section 12 of the Banking Regulation Act, 1949 read with Section 56 thereof. In view of the changes mandated by the said amendments, the Reserve Bank of India has released today, the Draft Circular on ‘Issue and regulation of share capital and securities - Primary (Urban) Co-operative Banks’. Comments on the Draft Circular are invited from UCBs, sector participants and other interested parties by August 31, 2021.

As the provisions of the amended Banking Regulation Act, 1949 have come into force for State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) from April 01, 2021, comments on the Draft Circular are also invited from StCBs / DCCBs, rural co-operative banking sector participants and other interested parties, as to whether a similar approach on issue and regulation of share capital and securities is warranted for StCBs / DCCBs.

Feedback on the Draft Circular may be forwarded by email with the subject line “Feedback on Draft circular on issue and regulation of share capital and securities – Primary (Urban) Co-operative Banks”.

(Yogesh Dayal)
Chief General Manager

Press Release: 2021-2022/527

FAQ :

The draft circular addresses the issue and regulation of share capital and securities for Primary (Urban) Co-operative Banks, following amendments to the Banking Regulation Act, 1949.

Comments are invited from Primary (Urban) Co-operative Banks, sector participants, and other interested parties. Feedback is also sought from State Co-operative Banks, District Central Co-operative Banks, and the rural co-operative banking sector.

Comments on the draft circular must be submitted by August 31, 2021.

The draft circular specifically addresses Primary (Urban) Co-operative Banks. However, comments are also requested on whether similar regulations are warranted for State Co-operative Banks and District Central Co-operative Banks.

Feedback should be forwarded via email with the subject line 'Feedback on Draft circular on issue and regulation of share capital and securities – Primary (Urban) Co-operative Banks'.

Guest

Notification No : Press Release: 2021-2022/527
Published in Community & General
Source : https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51893

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