The Reserve Bank of India (RBI) published a report on the research findings about whether there is a need to establish a national umbrella trade association for Urban Cooperative Banks (UCBs), commonly known as credit unions. The report also discovered that the broad range of UCBs in terms of type, range of services and economic viability leads to a lack of cohesion in the industry resulting in their relative inability to compete against commercial banks. The recommendation of the report is that an umbrella trade association would provide a shared infrastructure, such as a common ATM network, which would enable UCBs to achieve economies of scale. In addition, an umbrella trade association would provide an emergency liquidity facility and a “Revival Fund” for struggling UCBs.

About RBI:
Reserve Bank of India established in 1935 undertakes consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies. The current focus of RBI is to supervise financial institutions, consolidate accounting standards, resolve legal issues in banking fraud, assess the divergence non-performing assets and supervise the rating model for banking sector. RBI consists of twenty-two regional offices. RBI website: http://www.rbi.org.in/scripts/AboutusDisplay.aspx#MF

Bibliography:
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reserve+Bank+of+India+%28RBI%29