Q. The Reserve Bank of India has directed to implement System Based Asset Classification to which type of financial institutions?
Answer:
Urban Cooperative Banks
Notes: With an aim to improve the efficiency and transparency in asset classification process, the Reserve Bank of India issued a direction to implement “system-based asset classification” in Urban Co-operative Banks (UCBs).
Those UCBs having total assets of Rs.2000 crore or above as on 31st March 2020, should implement system-based asset classification from 30th June 2021. Those UCBs having total assets equal to or more than Rs.1000 crore but less than Rs.2000 crore shall implement it from 30th September 2021.