New Delhi: The Reserve Bank of India (RBI) has asked large urban cooperative banks to undertake the system-based asset classification from 30 June 2021, to improve efficiency and transparency.
Having total assets of over Rs 2,000 crore as on 31 March 2020, will be required to implement the system-based asset classification from 30 June 2021, an RBI circular said.
Cooperative banks having total assets of over Rs 1,000 crore but less than Rs 2,000 crore as on 31 March 2020 and having self-assessed themselves as being under Level III or Level IV on the Comprehensive Cyber Security Framework will be required to implement system-based asset classification from 30 September 2021.
“UCBs which meet the (specified)… criteria as at the end of the current or subsequent financial years shall implement system-based asset classification within a period of six months from the end of the financial year concerned,” the RBI said.
System-based asset classification refers to asset classification (downgrading as well as upgrading) carried out by the CBS /computerized systems of the bank in an automated manner on an ongoing basis, based on the relevant RBI instructions/guidelines.
