The Reserve Bank of India has flagged continued stress among Urban Co-operative Banks, noting in its Discussion Paper that 82 UCBs are currently under supervisory restrictions.
Of these, 28 very weak banks are under All-Inclusive Directions (AID), 32 UCBs have been placed under Prompt Corrective Action (PCA) and 22 are under the Supervisory Action Framework (SAF).
RBI further pointed out that all 57 insolvent UCBs whose banking licences were cancelled since 2020–21 belonged to Tier 1 to Tier 3, highlighting persistent vulnerabilities among small and mid-sized co-operative banks.