Before welcoming the decision of Reserve Bank of India, it is necessary to examine the contradictions, inconsistencies, and practical feasibility within it. It is easy to welcome a policy simply because it has arrived; but the more important question is how many new urban co-operative banks will actually result from it in practice.
The door is open but how tough are the entry conditions ?
Under the RBI’s proposed criteria, an applicant credit society must have at least ₹10,000 crore in deposits, at least ₹300 crore in net worth, at least ten years of business experience, Net NPA below 3 percent, and a CRAR of at least 12 percent. Alongside this, there are also strict criteria regarding financial performance, management, technology, risk management, and business plans...(Read the full article in the September 2026 issue)