RBI allows UCBs to augment capital
On Wednesday, RBI came out with its drafting guidelines that will allow primary urban cooperative banks to augment capital through the issuance of equity shares, preference shares, and debt instruments. 
UCBs could increase the share capital by the issue of equity to persons within their area of operation enrolled s members and also through added equity shares to current members.
They are also allowed to issue Perpetual Debt Instruments which will be eligible to be included in Tier-I capital as well as long-term subordinated bonds as Tier-II capital.
On June 29, 2020, the Banking Regulation Act,2020 came into effect for the Primary ((Urban) Co-operative Banks.
