I would also take the present opportunity to share with you the recent decision to waive the signing of MoU as a pre-condition for opening of branches by State Co-operative Banks in the States which do not need the re-capitalisation assistance under the Revival Package, provided they comply with all other conditions.
The committee on Financial Sector Assessment (Chairman: Dr. Rakesh Mohan and CoChairman: Shri Ashok Chawla) had recommended that rural co-operative banks, which fail to obtain licence by March 2012, should not be allowed to operate. Accordingly, it was proposed in the Annual Policy Statement of April 2009 to work out a roadmap for licensing of unlicensed state and central co-operative banks.