ThePrint ThePrintPod: RBI considers resuming urban co-op bank licences after 2 decades. But high capital bar may shut most out
Jan 27, 2026
A debate over reopening urban cooperative bank licences and who would meet steep new capital rules. Discussion of a proposed Rs 300 crore minimum and fears it would shut out most societies. Talk about a new support body for reforms and digital upgrades. Tension between consolidation and wider geographic access sparks calls for tiered capital norms to include smaller local societies.
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RBI May Reopen UCB Licensing
- RBI is considering reopening licensing for urban cooperative banks after a freeze since 2004 due to past failures.
- The discussion paper seeks feedback and sets eligibility around capital, governance and scale.
High Capital And Performance Barriers
- The proposed rules demand Rs 300 crore minimum capital, 12% CRAR and NNPA under 3% at licensing time.
- RBI prefers multi-state societies and wants strong five-year performance and governance standards.
Prepare Societies For Licensing
- Cooperatives should consider consolidation or scaling to meet the Rs 300 crore threshold if they want RBI oversight.
- The NUCFDC will send formal feedback to RBI after internal deliberations, indicating advocacy channels exist.