RBI to Consider New Urban Cooperative Bank Licenses

The Reserve Bank of India (RBI) is thinking about letting new Urban Cooperative Banks (UCBs) open up.

The RBI stopped giving out new licenses for these banks in 2004 because some banks weren't doing well.

Now, after over twenty years, the RBI sees the sector improving and may start giving out licenses again.

The goal is to strengthen these banks, help them grow responsibly, and bring banking services to more people.

Currently, there are 1,472 UCBs in the country.

Deposit growth of these banks is still lower than commercial banks.

The RBI will release a discussion paper soon to collect feedback on this plan.