RBI has also prescribed that at least two directors with suitable banking experience or with relevant professional qualification in the fields of law, accountancy or finance are co-opted on the Board. The Malegam Committee has even recommended creation of a professional Board of Management structure in between the Board of Directors and the CEO as a pre-condition for licensing of new urban co-operative banks.
However, there are still many governance gaps that need to be addressed for the UCBs of future. There can hardly be a debate on the desirability of a higher degree of professionalism in the governance structure of co-operative institutions. We will like to look forward to having a highly efficient and professional management structure in next-gen cooperative banks. 48.