Appendix

Draft terms of reference of the TAFCUB

1. To categorise the UCBs in the state under the two tiers of regulatory regime.

2. To identify banks, which are viable, potentially viable and unviable.

3. To recommend the various conditions, including the nature and extent of funds required to be infused, in each UCB identified as potentially viable, the source thereof, changes in management where necessary and the time frame for achieving viability. In doing so, the TAFCUB may assign responsibility to different agencies for facilitating the turn-around.

4. To set up milestones for evaluation of progress made under the rehabilitation plan.

5. To recommend the future set up of the existing unlicenced banks whose applications are pending with Reserve Bank of India.

6. To recommend the manner and time frame for exit of the un-viable banks, which could be in the form of merger / amalgamation, conversion into a credit society and liquidation. The proposals for merger / amalgamation recommended by the TAFCUB shall conform to the guidelines issued in this regard.

7. To arrive at a threshold limit of deposits that would make a depositor automatically eligible to become a member.

8. To recommend on the management aspects of a bank which is placed under the revival plan.

9. Any other issues as may be referred to it by the Reserve Bank of India.