RBI Proposes Resumption of Licensing of UCBs

On 13th January 2026, the Reserve Bank of India (RBI) issued a discussion paper on 'Licensing of Urban Co-operative Banks (UCBs)’ which put forth a proposal to reopen the licensing window for Urban Co-operative Banks (UCBs), ending a two-decade pause.

  • The initiative specifically aims to grant licenses to co-operative credit societies, acknowledging that most past UCB failures involved smaller entities.
  • Since 2004, licensing for UCBs has been paused by the RBI as it found that a large number of the newly licensed ones became financially unsound within a short period.

Key Points

Proposed Eligibility Criteria for New UCB

  • Capital: Minimum Rs ....
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