urban banks ( tafcub ), constituted in states that have signed memorandum of understanding ( mou ) with the rbi. the tafcub has representatives from state government, ucb sector and the rbi. till april 16, 2008, mous had been signed with 16 state governments and central government, which encompass 1586 ucbs constituting 87. 1 per cent of the total number of banks, which account for 93. 8 per cent of the total deposits of the ucb sector. 33. i may mention that a medium - term framework for urban co - operative banks up to the year 2010 has been drawn up in order to facilitate the development of this sector into a strong and vibrant system comprising entities conforming to all prudential requirements. the standing advisory committee for urban co - operative banks is increasingly being used for continuous dialogue with the various stakeholders of the sector. the deposits with the grade i and grade ii ucbs ( the banks with no / low supervisory concerns ) as a proportion of total deposits of the ucbs, excluding the two banks in gujarat and andhra pradesh, which faced the crisis, amounted to 77. 5 %. this indicates that, at the moment, there is considerable improvement in the regulatory comfort as far as ucbs are concerned. the process of improved cooperation and collaboration with all stakeholders under the mou is likely to strengthen the position further. impact of ucbs on the amount of claims settled by the dicgc 34. in the context of the ucbs, it is appropriate to mention the impact of their operations on the pay out by the dicgc to the depositors affected by the weak ucbs. it is instructive to note that since the inception of dicgc in 1962 till the year 2000 - 01, claims paid to cooperative banks by the corporation amounted to rs. 71. 9 crore, which constituted 27. 43 per cent of the total claims paid by the corporation during the period. however, since the year 2001, the quantum of claims paid in respect of co - operative banks multiplied manifold, on account of failure of large ucbs since then. thus, during the period between 2000 - 01 and 2006 - 07, the claims paid in respect of cooperative banks aggregated rs. 2226. 60 crore. further, out of total claims of rs. 2594. 30 crore paid in respect of all the banks up to 2006 - 07, over 88 per cent of the amount paid was in respect of 176 ucbs alone.

global tech cycle and growing trade tensions. the modern services cluster will be the main driver of growth this year, supported by healthy regional demand and increased investments in digitalisation as the domestic economy undergoes transformation. domestic industries will make a modest, positive contribution to overall growth, as the construction sector turns around, and retail and f & b benefits from firm labour demand conditions and efforts to lift productivity. inflation and monetary policy inflation in singapore remains subdued and within expectations. mas core inflation this year is expected to come in near the mid - point of the forecast range of 1 – 2 %. while there will be some domestic cost pressures from firm labour market conditions, underlying inflationary pressures should remain contained. first, the slower pace of gdp this year is expected to close the positive output gap. in recent years, gdp was growing faster than potential. second, the fall in global oil prices in q4 2018 and the deregulation of the electricity distribution market have exerted a dampening effect on inflation. third, the two rounds of monetary policy tightening last year by mas will continue to have a restraining effect on inflation. cpi - all items inflation for the year is projected to be between 0. 5 and 1. 5 %. private road transport costs could pick up slightly from 2018 with higher car prices more than offsetting lower petrol prices. accommodation costs are likely to decline, but at a slower pace this year. overall inflation in singapore remains well below the historical average. mas ’ monetary policy stance remains appropriate against the backdrop of subdued inflation and weakening growth prospects. last year, mas began the process of monetary policy normalisation by exiting from the zero percent appreciation path of the nominal effective exchange rate ( s $ neer ) policy band. mas increased slightly the slope of the policy band in april 2018 and again in october 2018, against the backdrop of healthy economic growth and gradually rising inflation. in april this year, with inflationary pressures stabilising and the output gap beginning to narrow, mas kept the policy stance unchanged. our current stance of a modest and gradual appreciation path of the s $ neer policy band will help to keep the economy close to potential and ensure medium - term price stability. financial stability globally, risks to financial stability remain elevated, amidst high levels of indebtedness. in the eurozone, the large exposure of banks to government securities means the risk of a sovereign - bank debt crisis remains. in the us, corporate debt has increased by 30 % since the global financial crisis, with