There are reports that, the Reserve Bank of India (RBI) and the govt. of India have had mutual consultations and decided to give licences to urban cooperative banks in the next days.
Earlier, the Malegam Committee had suggested that UCBs play a useful role and there is need for UCBs to begin their operations in unbanked districts and areas.
Sources say most of India is still not banked and cooperative banks could easily supply this insufficiency.
RBI has recently cleared licence for Banks to many private players raising hope amid cooperative circles which has been waiting for government clearance for a long time.
Nafcub Chairman Mukund Abhyankar was on the panel of Malegam Committee to work out pre-condition for granting licence to Urban Cooperative banks.