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Karnataka State Co-operative Urban Banks Federation Ltd 132, K H Road, Bangalore-27 Email: kscubfed@gmail.

com AGENDA FOR DISCUSSION27TH Meeting of Standing Advisory Committee for Urban Cooperative Banks Sl No 1 Issue Deployment of Fundsinvestments in Govt Securities From KSCUBF Details In terms of RBI Circular dt 26th Nov 2008, all non-scheduled UCBs shall be required to maintain SLR in Govt and other approved securities up to 25% of their NDTL from 31st March 2011 onwards it is requested to do away with proposed condition due to practical and operational difficulties Revision of exposure limits to 30% of total assets, due to rise in cost of construction.

Exposure Norms for(i) Housing Finance(ii) Real Estate Finance for UCBs( Loan to Directors and their relatives

Sree Subramanyeswara Co-op Bank LtdBangalore National Cooperative Bank Bangalore KSCUBF

Gradation

Deployment of Funds-Stock Market

KSCUBF

Extension of Interest Subsidy/Capital Subsidy Exposure LimitsHousing Finance

National Cooperative Bank Bangalore National Cooperative Bank

Directors relatives namely spouse, unmarried daughter, unemployed son who solely depend on the income of their parents Should be permitted to avail loans It has been reported by some UCBs that their grade has been downgraded considering the parameters other than CRAR, Net-NPA,Profit & CRR/SLR i.e violation of guidelines with respect to donations, etc Tire II -Grade I UCBs may be permitted to deal in purchase and sale of Equity Shares of listed Govt of India Companies to an extend of 10% of their own funds after fulfilling CRR/SLR Investment limits Extension of benefit of interst subsidy/capital subsidy to borrowers like Small Scale industrialist,doctors,engineers and Self employed entrepreneurs Excluding exposure to individual housing loans, small commercial complexes and mortgage loans out side the preview of actual advances to

real estate sector. Sl No 8 Issue SARFAESI Act From National Cooperative Bank National Cooperative Bank Bangalore Details Minimum 50% of the claim amount may be insisted before its is challenged in the DRT by the borrowers. Well managed UCBs be allowed to extend its area of operation voluntarily for which General Norms/parameters be prescribed The insurance coverage of banks should be enhanced from Rs 1 lakh to Rs 5 lakh, because this limit was fixed ten years back as well as premium is collected on total deposits of the insured bank. This needs consideration. In order to improve CD ratio,as also the gap ,viable potential High Value business., UCBs be permitted to take part under Consortium finance within the available exposure norms Well managed UCBs may be permitted top sale of Gold Coins with a tie up arrangements with commercial banks / Authorized Gold Coin sellers. i) Credit facility outstanding against the member before they becoming a director need be allowed to be repaid until the tenure of loan. ii) The relatives of the directors may be permitted to avail credit facilities on their own securities and a threshold limit may be specified. iii) Restrictions for loans may cover, Director, Spouse, unmarried daughters and unmarried sons who solely depend on the income of parents

Extension of Area of operation

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Deposit Insurance National Cooperative Bank Bangalore

11

Consortium Finance

National Cooperative Bank Bangalore National Cooperative Bank Bangalore National Cooperative Bank Bangalore

12

Sale of Gold Coins

13

Loan to Directors

Ref:

/KSCUBF/RBI/SA-27

November 24, 2011

The General Manager Urban Banks Department Reserve Bank of India Central Office.1 Floor, Garment House Worli- Mumbai-400018 Dear Sir, Sub: 27th Meeting of the Standing Advisory Committee for Urban Cooperative Banks-Agenda With reference to your letter UBDF.CO.MIS.No 2770/09.40.002/2011-12 dt 14.11.2011 Please find enclosed list of issues to be considered for inclusion in the agenda for discussion in the meeting. Kindly acknowledge Yours faithfully

Pundalik N Kerure

Chief Executive Officer (i/c)

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