Monday, March 15, 2010

GUIDELINES FOR TRANSFER OF ASSETS AND LIABILITIES OF UCBs

The following guidelines are laid down for considering sanction of scheme of transfer of assets and liabilities (including branches) of Urban Cooperative Banks (UCBs) (having negative net worth) to commercial banks with DICGC support.

Audit-cum-Due diligence

The audit-cum-due diligence should be carried out in respect of the transferor bank with reference to the financial position as at the close of business of the day immediately preceding the effective date of transfer. For this purpose, independent auditors (chartered accountants) may be appointed by the

transferee bank with the concurrence of DICGC.

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