A Reserve Bank of India panel has recommended conversion of Urban Cooperative Banks, UCBs with business size of 20,000 crore rupees or more into regular banks to allow them to grow and proliferate further for financial inclusion. A report of the High Powered Committee on UCBs headed by RBI Deputy Governor R Gandhi however clarified that the conversion will not be compulsory for large UCBs and they can continue the way they operate currently in terms of balance sheet or asset size. In order to minimise the systemic risk, the committee has recommended that large UCBs convert themselves into commercial banks.The panel further said smaller UCBs with business size of less than 20,000 crore rupees willing to convert to Small Finance Banks can apply to the Reserve Bank for conversion. It has also suggested that licenses may be issued to financially sound and well-managed cooperative credit societies having a minimum track record of 5-years to operate as UCBs. RBI has invited suggestions and comments from public on this report by 18th of next month.