Regulation of Urban Cooperative Banks

The Urban Cooperative Banks have to obtain a license from the Reserve Bank for doing banking business. The unlicensed primary (urban) co-operative banks can continue to carry on banking business till they are refused a license. Further UCBs also have to obtain prior authorization of the Reserve Bank to open a new place of business. UCB have to follow the Prudential norms relating to income recognition, asset classification, provisioning and capital adequacy ratio.