Urban Cooperative Banks

RBI looks to resume UCB licences after 22 yrs; moots ₹300 cr min capital

CAR not less than 12%; net NPA not above 3%

RBI proposes 3-year break for co-op banks' directors after 10 yrs on board

Banking Regulation (Amendment) Act has prescribed a ceiling on the continuous tenure of directors on both state and central co-operative banks and urban co-operative banks, raising it from 8 to 10 yrs

Number of UCBs declines to 1,457 in FY25 as RBI consolidation continues

India's urban co-operative banks fell to 1,457 at end-March 2025 from 1,926 in 2004, as RBI consolidation continued via mergers, closures and licence cancellations

RBI's new guidelines may slow expansion of urban cooperative banks

Officials also said the new rules would raise compliance costs by over 20 per cent

New national policy on cooperatives calls for apex bank for the sector

India has over 800,000 cooperative societies, comprising around 200,000 cooperatives and 600,000 non-credit cooperatives

UCB directors must probe management to boost governance: RBI's Swaminathan

RBI advises UCB directors to ask tough questions to senior management to ensure ethical, transparent, and prudent operations, aiming to prevent distress in the banks

RBI's revised PSL norms: HDFC Bank, Federal Bank, IndusInd Bank to benefit

Augurs well for banks with relatively lower organic PSL generation

UCBs must be mindful of responsibilities: RBI Governor Sanjay Malhotra

He said that the UCBs must maintain high standards of customer service to build and retain trust

Urban co-op banks must be mindful of trust reposed by depositors: RBI Guv

RBI Governor Sanjay Malhotra advised the UCBs to ensure that they remain operationally resilient, including against IT and cyber-related risks

RBI raises UCBs' small-value loans per borrower cap to Rs 3 crore

According to RBI norms, UCBs are required to have at least 50 per cent of their aggregate loans and advances consisting of small value loans by March 31, 2026

Will return money of Urban Cooperative Bank's depositors, says Odisha CM

He said the government has decided to take up 54 programmes under the cooperative sector

Up to 65 weak Urban Cooperative Banks to exit turnaround regime by March

PCA will replace the existing SAF from the beginning of the new financial year - Apr 2025. During FY24, 122 UCBs across the country came out of SAF. The number of UCBs stood at 1,470 at end of Mar '25

Norms for new capital instruments for Urban Cooperative Banks on anvil

Shaktikanta Das stated that to provide more flexibility, avenues for UCBs to raise capital, a discussion paper on capital-raising avenues will be issued for feedback from stakeholders

RBI pulls up UCBs creating Dividend Equalisation Fund for payments

Gives one time permission to transfer corpus to reserves

Reserve Bank of India releases PCA framework for urban cooperative banks

The new framework will be applicable to UCBs with deposits above Rs 100 crore

RBI issues prompt corrective action framework for urban cooperative banks

The RBI on Friday issued a prompt corrective action framework for urban cooperative banks with an aim to enabling supervisory intervention at an appropriate time. The provisions of the Prompt Corrective Action (PCA) Framework for Primary (Urban) Co-operative Banks (UCBs) will be effective from April 1, 2025. The objective of the PCA Framework is to enable supervisory intervention at an appropriate time and require the UCBs to initiate and implement remedial measures in a timely manner, to restore their financial health. The Reserve Bank had issued a Supervisory Action Framework (SAF) as an early intervention tool for bringing about desired improvements in weak UCBs and UCBs which are experiencing financial stress. The SAF was last revised in January 2020. "This PCA framework shall replace the SAF," the RBI said in a statement. The revised framework seeks to provide flexibility to design entity specific supervisory action plans based on the assessment of risks on a case-by-case ...

UCB credit profile improves in H2FY24, says financial stability report

UCB executives said besides regulatory push for effective asset quality management, the upturn in credit growth and improvement in margins have helped enhance provision cover

Tough times for urban cooperative banks as bad loans build, ranking dips

Lenders that hold more than Rs 5 trillion in deposits are weaker after the pandemic

UCB advances to priority sector up over 27% in FY23, shows RBI data

A majority of the advances of UCBs was given to MSMEs, amounting to Rs 1.3 trillion in FY23

UCBs strengthening profile on regulatory support, improved margins

With the repricing of loans and higher lending rates for fresh loans, the net interest margins improved from a low of 1.89 per cent in Fy20