RBI to reopen urban cooperative bank licensing after 2004 pause
Business
After a long pause since 2004, the Reserve Bank of India (RBI) is set to reopen licensing for urban cooperative banks (UCBs).
This move, announced at the August 2026 monetary policy decisions on Wednesday, August 5, 2026, aims to better manage risks in a sector that has seen its share of troubles, including the crisis at Madhavpura Mercantile Co-operative Bank in 2001.
UCBs fall from 2,100 to 1,457
UCBs have dropped from over 2,100 in the early 2000s to about 1,457 by 2025 due to mergers and tighter rules.
Cooperation Ministry Secretary Ashish Kumar Bhutani said UCBs in every town.
RBI's new draft guidelines focus on stronger governance and financial health, with stricter checks.