RBI New Circular 2022 : Reserve Bank of India has issued guidelines regarding large urban cooperative banks. According to the new directive, RBI has asked Urban Cooperative Banks to appoint Chief Compliance Officer. However, these orders are for only a few banks.
Instructions for these banks
Let us tell you that this instruction has been issued for urban cooperative banks having deposits of Rs 1000 crore or more. RBI has asked these banks to make a board approved policy to meet the regulatory norms.
Appointed by 1st April 2023
According to the circular issued by RBI, Urban Cooperative Banks (Tier 4 UCBs) having deposits of more than Rs 10 thousand crores have been given time till April 1, 2023 to comply with the new instructions, while from 1 thousand crores to 10 thousand crores rupees. Urban Cooperative Banks (Tier 3 UCBs) with deposits up to Rs.
CCO will be appointed for 3 years
As per RBI circular, the appointment of Chief Compliance Officer (CCO) in UCB should be done for a fixed term of at least 3 years. The circular said that in some special circumstances, the board or board committee of these banks may also be allowed to appoint a CCO for one year, in such cases it will be necessary to present a detailed plan for the appointment of his successor.
this is the reason
The Reserve Bank said that the approval of the board is necessary to fulfill the regulatory norms of UCBs. It should be reviewed at least once a year. RBI said that these new instructions have been issued for urban cooperative banks so that all legal and regulatory obligations can be strictly implemented.