It is in this critical context that, the Reserve Bank committed itself to strengthening the sector and to protect the depositors’ interests. The Reserve Bank’s Vision Document for UCBs brought out in March 2005 with the objective of maintaining the viability and competitiveness of the cooperative sector.
Second, there should be a prohibition on government intervention or interference in the formulation or implementation of policy decisions relating to the responsibilities allocated to the central bank. Third, there should be restrictions on government actions, such as borrowing from the central bank, that might compromise the Bank’s ability to formulate and execute policy.