In a significant policy update for the urban cooperative banking sector, the Reserve Bank of India (RBI) has revised the eligibility norms for Urban Co-operative Banks (UCBs) seeking inclusion in the Second Schedule of the RBI Act, 1934.

The new circular, issued on December 4, replaces specific provisions announced on November 28 and expands eligibility to all licensed UCBs, except Salary Earners’ Banks, provided they meet the prescribed criteria.

Under the updated guidelines, the earlier restriction, where only Tier 3 and Tier 4 UCBs could apply, has been removed. Now, any licensed UCB, regardless of its tier classification, may seek scheduled-bank status if it satisfies the conditions laid out in the circular.

These include maintaining minimum deposits required for Tier-3 categorisati

See Full Page