Overview
- RBI issued a discussion paper on January 13 proposing the resumption of UCB licensing and invited comments through February 13, 2026.
- The paper favors granting licenses only to large co‑operative credit societies with at least 10 years of operations and a good five‑year financial record.
- Proposed financial thresholds include minimum capital of Rs 300 crore, assessed CRAR of at least 12 percent, and NNPA no higher than 3 percent at the time of licensing.
- The cautious approach reflects failures concentrated in smaller UCBs, with 2020–25 license cancellations often linked to governance lapses or fraud.
- The sector comprises 1,457 UCBs holding Rs 7.38 lakh crore in assets and Rs 5.84 lakh crore in deposits as of March 31, 2025.