Urban Cooperative Banks (UCBs) meeting specified regulatory and deposit criteria are now eligible for Scheduled status under Schedule II of the Reserve Bank of India Act, 1934, marking an important development for the cooperative banking sector.
The update was shared through the official social media handle of the Ministry of Cooperation, stating that UCBs fulfilling the Business Authorisation eligibility criteria and maintaining the prescribed Tier 3 minimum deposit requirements for two consecutive years can qualify for inclusion in Schedule II.
The move provides a clearer regulatory pathway for eligible UCBs seeking Scheduled status and is expected to encourage banks to strengthen their business operations and maintain the required deposit base consistently.
Scheduled status under Schedule II is significant for cooperative banks as it places eligible institutions within the framework applicable to scheduled banks, subject to the relevant regulatory conditions.
