Apart from legislative changes, an important aspect relating to the supervisory framework for Urban Cooperative Banks has been proposed. This would need to be pursued in consultation with the Central and State Governments. Tasks ahead for the Reserve Bank of India First, RBI has already forwarded the draft amendments to the various acts, which is under consideration of the Government.
However, some further work may be needed from RBI also. Second, the changes proposed in the financial sector will need follow-up actions by RBI. For instance, the move over to the second and third stages of LAF would need RBI to have a greater fix on the liquidity in its system.