0 months ago
RBI Resumes Urban Cooperative Bank Licensing After Two Decades
Banks keep our money safe and give loans to people.
In India, there are big banks and smaller cooperative banks owned by groups of people who work together.
They help local communities save and borrow money.
Long ago, the Reserve Bank of India stopped giving permission for new cooperative banks to open.
That was more than twenty years ago.
Now, the RBI says it will start giving permission again.
The RBI listened to what people thought about its ideas before making this decision.
The head of the RBI, Mr. Malhotra, announced that new banking rules are coming.
Loan rules are also set for a major change.
This means people may see new cooperative banks soon.
RBI will resume fresh licensing of Urban Cooperative Banks (UCBs) after a gap of more than two decades.
Draft guidelines for resuming UCB licensing are being issued, according to the announcement.
The decision is based on feedback received on the RBI's discussion paper on UCB licensing.
Malhotra of the RBI made the announcement, described as a big banking reset.
Loan rules are also set for a major change alongside the licensing move.
- Who
- The Reserve Bank of India (RBI), with the announcement made by Malhotra.
- What
- Fresh licensing of Urban Cooperative Banks is set to resume, with draft guidelines to be issued and loan rules facing major changes.
- Where
- India, under the jurisdiction of the Reserve Bank of India.
- When
- After a gap of more than two decades since the last UCB licensing round; no specific date was given.
- Why
- Based on feedback received on the RBI's discussion paper on licensing of Urban Cooperative Banks.
Key facts
- Central Bank
- Reserve Bank of India (RBI)
- Announcement
- Fresh licensing for Urban Cooperative Banks (UCBs) to resume
- Licensing Gap
- More than two decades since the last UCB licensing
- Next Step
- Issuing draft guidelines for resuming UCB licensing
- Basis
- Feedback on the RBI's discussion paper on UCB licensing
- Announced By
- Malhotra of the RBI
- Other Change
- Loan rules set for a major change
Quotes
R. C. Malhotra
Chief Secretary, Reserve Bank of India
“On the basis of the feedback received on the discussion paper on licensing of UCBs, we are issuing draft guidelines for resuming licensing of UCBs.”
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