Such banks, freed from dual control and with better ability to raise capital, may be able to further extend the reach of banking services. Licensing of new UCBs and conversion of UCBs into commercial banks 29.
In pursuant of the conclusions of the Discussion Paper and in view of the high aspirations of UCBs to undertake the business akin to commercial banks despite lack of level playing field for regulation of UCBs vis-a-vis commercial banks and pursuant to the deliberations held in the 31st Standing Advisory Committee of UCBs, a High Powered Committee under my chairmanship was constituted to examine and recommend permissible business lines and appropriate size, and examine the issues with regard to conversion of UCBs into commercial banks besides determining whether the time is opportune to issue new licenses to UCBs as recommended by the Malegam Committee.