In many countries, cooperative credit societies – also known as credit unions – have established significant importance and presence. These entities often benefit from supportive umbrella structures connecting them and offering various financial solutions, both fund- and non-fund-based. Noteworthy global examples of umbrella entities include the Rabobank group (The Netherlands), Crédit Agricole group (France), the Raiffeisen Bank group (Austria) and similar networks operating in Australia, Canada, and the United States. However, no equivalent organisation exists in India for its nearly 1,500 urban cooperative banks (UCBs). This void might soon be filled by the newly formed National Urban Cooperative Finance
How to open urban co-operative bank?
For commencing banking business, a primary (urban) cooperative bank, as in the case of commercial bank, is required to obtain a licence from the Reserve Bank of India, under the provisions of Section 22 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies)
What is the RBI policy for urban cooperative banks?
UCBs can now classify loans up to 2.5 million rupees ($28,842.71) or 0.4% of Tier I capital, whichever is higher, as small-value loans, subject to a ceiling of 30 million rupees per borrower, the Reserve Bank of India said.
