It is likely that large urban co-operative banks (UCBs) may come to be solely under the provisions of the Banking Regulation Act. However, the smaller banks among them are to remain within the exclusive fold of the Registrar of Co-operative Societies.
The upcoming changes will bring curtains down on the vexed issue of dual control of UCBs, which has been in vogue for past 54 years. These banks came to be within the ambit of the RBI when certain provisions of the BR Act were extended to them — effective March 1966 — even as the RoCS remained vested with significant change. In the revised scheme, the inspection of the UCBs solely under the Banking Regulation Act will be done by the central bank.