When even the 2nd suggestion did not materialise, the Reserve Bank in the Vision document for UCBs proposed the adoption of a coordinated approach to deciding the future set up of weak and sick banks in each state.
To this end, Memorandum of Understanding (MoU) was signed between RBI and respective state governments and Central Government, in the case of multi-state urban cooperative banks, to achieve greater convergence of approach of the two agencies tasked with the regulation and supervision of UCBs.