Fourth, the RBI, as far as possible, has recently been refraining from issuing circulars or instructions specifically addressed to the public sector banks. It is expected that all the existing instructions specifically applicable to the public sector banks will be reviewed by the Reserve Bank so that uniformity in regulatory framework between different categories of banks is formally established.
Fifth, several amendments to the Banking Regulation Act have been proposed which would enhance RBI’s capacity to ensure sound governance specially relevant to the banks, consistent with global best practices. In regard to urban co-operative banks (UCBs), there are unique problems which need to be addressed.