PTIThe Reserve Bank of India (RBI) on Monday proposed tighter norms for urban co-operative banks (UCBs) to prevent the repeat of scams such as the one at PMC Bank. In a draft circular, the central bank said the large exposure of banks to single borrowers or groups of connected borrowers leads to credit concentration risks. “Keeping in view the above aspects, the extant single/group exposure limits of UCBs have been reviewed and it has been decided to rationalise the single/group exposure limits for UCBs with a view to containing the concentration risk,” the draft said. It added that the revised exposure limits shall apply to all types of fresh exposures taken by UCBs. Of the total exposure, only Rs 439.58 crore was disclosed to the RBI and the remaining Rs 5,786.43 crore were undisclosed.

Source: The Telegraph December 30, 2019 20:26 UTC