The co-operative credit institutions, both urban and rural, are now placed on the path of revival through a consultative method of policy formulation, ensuring a workable regulatory arrangement to overcome the incentive problems and financial support wherever necessary. The strategy has started showing results which is crucial for sustaining their role in financial intermediation among the rural and urban poor and small savers.
Recent initiatives (i)  Supervision of financial conglomerates  Financial conglomerates (FC) pose certain risks to the financial system which could be detrimental to the overall financial stability.