RBI to Issue Draft On-Tap Licensing Rules for Urban Cooperative Banks

The Reserve Bank of India (RBI) is India's central bank that manages money and banks in the country.

Urban cooperative banks are small banks run by groups of people in cities.

For more than twenty years, the RBI did not give out new licences, or permits, to start these banks.

Now the RBI wants to start giving new licences again.

The RBI Governor, Sanjay Malhotra, said new draft rules will be shared soon.

People and banks will be asked for their opinions before the rules are finalised.

The RBI also plans to check the rules about Rural Co-operative Banks, which serve rural areas.

These rules make sure banks do not lend too much money to one person or group.

The goal is to keep banks safe and make the cooperative banking sector stronger.