Licensing Urban Cooperative Banks:
Reserve Bank of India (RBI) Governor announced that the central bank will soon issue draft guidelines for the resumption of on-tap licensing of Urban Cooperative Banks (UCBs).Licensing Urban Cooperative Banks (UCBs) refers to the regulatory authorization granted by the Reserve Bank of India under Section 22 (read with Section 56) of the Banking Regulation Act, 1949. This licence empowers primary cooperative credit societies to conduct banking activities—such as accepting public deposits and granting credit—in urban and semi-urban areas. Aim: To expand sustainable, relationship-based community banking, foster grassroots financial inclusion in urban/semi-urban regions, and allow well-run cooperative credit societies to transition into full-fledged regulated banks.
