The Committee recommended that it should be made as a licensing condition for a UCB. 9. Pursuant to the recommendations of the High Power Committee on Urban Co-operative Banks constituted by the RBI in 2001, presence of atleast two professional directors on the board of UCBs was made mandatory.
As much as possible, the CBN has avoided direct intervention in development financing, particularly where lending at interest rates below the market rates are involved. The Bank has, in this regard, embarked on schemes to establish quasi-government institutions and encouraged government funding through the Budget.