The Reserve Bank of India is likely to resume issuing fresh licences for Urban Cooperative Banks (UCBs), ending a nearly two-decade pause since 2004, according to an NDTV Profit report.
The development follows the RBI’s January discussion paper seeking feedback on allowing new UCBs. Industry participants reportedly supported the proposal, though some suggested reducing the proposed minimum capital requirement of Rs 300 crore.
According to NDTV Profit, the RBI believes improved regulatory oversight and supervisory standards in the cooperative banking sector now provide greater confidence for restarting licensing. The central bank’s paper highlighted benefits such as stronger financial inclusion, improved governance and better technological and institutional support for cooperative banks across the country.