RBI Proposes Special Shares for Urban Co-operative Banks

Imagine banks called Urban Co-operative Banks, or UCBs, are like local businesses that need money.

The Reserve Bank, which is like the bank of banks, wants to help them.

They suggested that the UCBs could sell special certificates, called SSCs, to people who want to invest.

These SSCs would be like a way for the banks to get money, and count as part of their main funds.

However, people who own these certificates wouldn't get to vote on how the bank is run.

The banks might also let people who invest in something called PNCPS borrow money to make those investments more attractive.