RBI vide notification no. RBI/2020-21/23 dated August 12, 2020 it has been decided to implemented system-based asset classification (i.e. Automated) in urban co-operative banks (UCBs) in order to improve the efficiency, transparency and integrity of the asset classification process.
Instructions are as under:
- UCBs having total assets of ₹2000 crore or above as on March 31, 2020 shall implement system-based asset classification with effect from June 30, 2021.
- UCBs having total assets of ₹1000 crore or above but less than ₹2000 crore as on March 31, 2020, shall implement system-based asset classification with effect from September 30, 2021.
- UCBs which meet the above 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.
UCBs not meeting the above criteria are also encouraged to voluntarily implement the system-based asset classification in their own interest.
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11948&Mode=0