Press Information Bureau

Government of India

Ministry of Finance

29-November-2011 17:46 IST

Specific assets and liabilities of two weak Urban Co-operative Banks (UCBs) ,which were under directions under Section 35 A of Banking Regulation Act 1949 (As Applicable to Co-operative Societies) were taken over by Public Sector Banks within last three years.

Reserve Bank of India has issued guidelines on February 24, 2010 for transfer of assets and liabilities of Urban Co-operative Banks to commercial banks (including Public Sector Banks).

RBI has issued guidelines on merger/amalgamation of UCBs on February 02, 2005, and January 30, 2009 for merger of UCB with strong UCB.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Rajya Sabha today.

DSM/ Hb

Transfer of assets and liabilities under Section 35A enables takeover by public sector banks under RBI guidelines. Specific assets and liabilities of two weak Urban Co-operative Banks under directions pursuant to Section 35A were taken over by public sector banks; the Reserve Bank of India issued guidelines on February 24, 2010 governing the transfer of assets and liabilities of Urban Co-operative Banks to commercial banks (including public sector banks), and had earlier issued merger/amalgamation guidelines in 2005 and 2009 for consolidation with stronger UCBs.