A major recommendation of the Committee was to prohibit unlicensed banks from functioning beyond March 2012. 27. As there were a large number of cooperative banks (17 out of 31 State Cooperative Banks and 296 out of 371 District Central Cooperative banks) functioning without license, the Reserve Bank of India relaxed the licensing norms to grant license to these banks.
The relaxed norms were i)  Capital to Risk-weighted Assets Ratio (CRAR) – Minimum 4 %, and  ii)  Compliance with CRR and SLR for the last one year (default on one or two occasions were permitted).