Urban Cooperative Banks (UCBs) are required to pay interest on deposits according to policies approved by their boards, the government informed the Lok Sabha on Monday.
Replying to a question, Union Minister of State for Finance Pankaj Chaudhary said that under the Reserve Bank of India Master Direction- Interest Rate on Deposits, 2025 issued on November 28, 2025, UCBs must follow a comprehensive interest rate policy approved by their Board of Directors or a committee authorised by the board.
The minister said the framework allows cooperative banks to determine deposit interest rates based on their internal policies while ensuring compliance with regulatory norms set by the RBI.
Chaudhary also informed the House that, according to the Central Registrar of Cooperative Societies, there are currently 66 Multi-State Cooperative Banks operating across the country.
State-wise data tabled in Parliament shows Maharashtra leading with 36 such banks, followed by Gujarat with 12. Uttar Pradesh and Rajasthan have four each, while Telangana has three. Haryana and West Bengal have two each, while Andhra Pradesh, Bihar and Tamil Nadu have one bank each.