Licenses to set up new UCBs may be issued to financially sound and well-managed co-operative credit societies having a minimum track record of 5 years which satisfy the regulatory prescriptions set by RBI as licensing conditions and putting in place a BoM in addition to BoD as suggested by Malegam Committee has to be one of the mandatory licensing conditions for licensing of new UCBs and expansion of existing ones.
This targeted build-up of capital buffers and the application of borrower-based measures takes into account heterogeneous cyclical developments across countries  2/4  BIS - Central bankers' speeches  and sectors in the euro area. It fine-tunes the overall policy mix and complements the single monetary policy in support of overall financial stability across the euro area.