RBI to Resume Urban Co-operative Bank Licensing After Pause

The Reserve Bank of India, which is the central bank of India, has decided to start giving out new banking licenses again to urban co-operative banks.

These are banks owned and run by groups of people who work together.

The RBI had stopped giving these licenses in June 2004 because many of these banks were in financial trouble.

Over the years, the banks became stronger because weaker ones closed down or merged with others.

Now the RBI thinks the sector is healthy enough to accept new banks.

To get a license, a society must have been operating for at least ten years.

It must also have a lot of money deposited, at least 10,000 crore rupees.

The bank leaders must have a good record and no one can own too much of the bank.

The RBI says it will be very careful and only give licenses to the best applicants.

It also plans to review rules for rural co-operative banks about lending risks.