Urban Cooperative Banks

Despite the critical role played by Urban cooperative Banks (UCBs) in financial inclusion, governance issues persist. In 2023-24, 24 UCBs lost their licenses due to mismanagement. Their market share declined to 2.5% (March 2024) from 3.8% in 2017, and gross NPAs stood at 8.8% in March 2024.

About UCBs

  • Urban Cooperative Banks (UCBs) primarily operate in urban and semi-urban areas, serving small borrowers and micro-businesses.
  • Their legal foundation dates back to the Cooperative Credit Societies Act of 1904, with the first urban cooperative credit society established in 1889 (Baroda).
  • UCBs function under a dual regulatory framework, where the RBI oversees ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Current Affairs