Constitution of Board of Directors
The Master Circular outlines the guidelines for the constitution of the Board of Directors for Urban Co-operative Banks (UCBs).
Role of Directors
The circular highlights the dos and don’ts for directors, including:
DOs:
(a) Maintaining discipline and involvement
(b) Playing a constructive and developmental role
(c) Making business-specific contributions
DON’TS:
(a) Non-interference in day-to-day operations
(b) No sponsorship or endorsement of any activity
(c) Maintaining confidentiality
Audit Committee of Board (ACB)
The circular outlines the role and responsibilities of the ACB.
Special Committee for Monitoring High Value Frauds
The circular establishes a special committee to monitor high-value frauds.
Calendar of Reviews
The circular outlines the matters to be placed before the Board of Directors for review.
Prohibition on Loans and Advances
The circular prohibits loans and advances to directors and their relatives.
Donations to Trusts and Institutions
The circular regulates donations to trusts and institutions where directors or their relatives hold positions or are interested.
Payment of Fees and Allowances to Directors
The circular outlines the guidelines for payment of fees and allowances to directors.
Annex I
The circular includes an annexure that provides additional information and recommendations made by the Madhava Das Committee on Urban Co-operative Banks.
Chat with the Master Circular: