The Committee has been asked to submit its report within three months from the date of its first meeting. Several cooperators associated with urban cooperative banks for long have been made member of this committee such as Dr. M. L. Abhyankar, President, Nafcub, D Krishna, Former Chief Executive , Nafcub and S.K.Banerji, Managing Director, Saraswat Cooperative Bank.
Issues such as what lines of business compared to commercial banks can be permitted for UCBs and what should be the benchmark in terms of size of business, capital requirement, regulatory regime etc.
Also, in view of the limited legal powers and resolution options, what should be the appropriate size upto which a UCB may be able to grow without undue risk to the system, under the current regulatory framework.
The term of reference for the Committee is also to determine as to when enabling legal framework is in place for conversion of a co-operative bank into a joint stock bank, what should be the criteria for allowing voluntary conversion by a UCB? What should be the benchmarks in terms of asset size, capital, etc., for mandatory conversion of UCB to a Joint Stock bank?
And most important of all the Committee would also examine whether the time is opportune to give license to new UCBs as per the recommendations of the Expert Committee on Licensing of New UCBs, (Malegam Committee) and if so the modalities of taking forward the recommendations of Malegam Committee.
It would also determine the modalities of implementing the suggestion of the Malegam Committee that 50 per cent in value of deposits should be held by voting members to assure that confidence regarding proper management is generated among investors. Alternatively propose a feasible structure that puts majority voting in the hands of contributors of funds.