RBI to consider financial restructuring proposals of urban co-operative banks

Reserve Bank of India (RBI) to consider financial restructuring proposals of urban co-operative banks.

The Reserve Bank of India (RBI) said it will consider the financial restructuring proposals of urban co-operative banks for conversion of deposits into equity even if the networth of the bank does not become positive.

The RBI considers financial restructuring proposals as an additional option for resolution of banks problem.

In a notification, The Reserve Bank of India (RBI) said “…the Reserve Bank would…consider financial restructuring proposals submitted by UCBs, involving conversion of deposits into equity/IPDI, even if the networth of the bank does not become positive after such conversion of deposits, provided the depositors agree voluntarily for such conversion”.

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