More fund-raising options for co-op banks

In order to offer a level playing field to co-operative banks, the Reserve Bank of India (RBI) may allow them to use new products for raising funds from the debt market.
The co-operative banks could come out with subordinate debt structures like tier-II bonds, tier-III bonds and upper tier-II or perpetual bonds to raise finance.

At present, these banks get financed from the National Bank for Agricultural and Rural Development (Nabard) to on-lend. A part of its funding also comes from the state government. They do not have independent fund-raising options.

In a meeting held recently, RBI and the Securities and Exchange Board of India have in principle zeroed in on the National Stock Exchange (NSE) as the favoured platform for launching the currency futures trading in India.However, NSE may have to float an independent subsidiary to start currency futures. RBI has set up a committee to look into the operational details for launching currency futures.