Despite a robust expansion of Urban Cooperative Banks (UCBs) across India, RBI report highlights a significant gap in their geographical reach. As of March 31, 2024, 307 out of 734 districts in the country still do not have the presence of a single UCB, pointing to a need for greater financial inclusion in rural and underserved areas.
The North Eastern Region remains the most underserved, with 71 out of 82 districts lacking UCBs. States like Assam, Manipur, Meghalaya, Mizoram, and Tripura each have a minimal presence, with some operating in just one or two districts. Similarly, Eastern India also lags behind, with 92 of 121 districts—including large parts of Bihar, Jharkhand, and Odisha—devoid of UCB branches.
In the Central Region, which includes Uttar Pradesh, Madhya Pradesh, Chhattisgarh, and Uttarakhand, 93 districts remain outside the UCB network. Meanwhile, even in relatively developed regions like the Northern Region, 45 out of 138 districts do not have any UCBs.
By contrast, Western and Southern India show near-complete coverage, with just 2 districts in the West and 4 in the South lacking UCB operations. Maharashtra, Karnataka, Tamil Nadu, Telangana, and Kerala have achieved full district-level penetration.
In light of the Reserve Bank of India’s report indicating that 307 out of 734 districts in India still lack the presence of Urban Cooperative Banks (UCBs), Union Home and Cooperation Minister Amit Shah had earlier emphasized the need for expansion. At the launch of the National Urban Cooperative Finance and Development Corporation (NUCFDC) in March 2024, Shah set a target to establish at least one UCB in every town across the country.
