I N N O V A T I V E INSTRUMENTS FOR UCBs TO RAISE FUNDS

In a bid to ease the capital raising process for the Urban Cooperative Banks (UCBs), a working group report by the Reserve Bank of India has suggested access of certain innovative instruments. The recommendations include access for raising redeemable cumulative preference shares and long term subordinated deposits with maturity in excess of 15 years. The group has recommended funds raised
through the special shares which are non-voting in nature.