India's Urban Co-operative Banks (UCBs) are calling on the Reserve Bank of India (RBI) for greater clarity over whether or not bill discounting under letters of credit (L/Cs) is permissible.

The question is one of several that the 1,600 UCBs want answered at a meeting with the RBI later this month.

Bill discounting

According to a UCB spokesman, the banks need clarification on the rules for bill discounting under L/Cs.

He says that some RBI inspection officials now allow the practice while others do not.

Level playing field

The UCBs also want to raise questions with RBI officials with the aim of finding ways for them to extend more credit to customers.

The RBI's standing advisory committee will also be asked by the UCBs to consider ways for them to raise capital that are currently open to commercial banks but not yet available to India's co-operative banks.

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