# RBI to reopen urban cooperative bank licence applications

2026-08-06T14:23:43+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

The Reserve Bank of India will resume issuing licences for urban cooperative banks on an on tap basis, after a pause of more than two decades. Governor Sanjay Malhotra said draft guidelines would soon be released for public consultation, following feedback on a January 2026 discussion paper. The paper proposed a minimum capital requirement of Rs 300 crore, at least 10 years of operations for cooperative credit societies and five years of sound financial performance. Applicants would also need a CRAR of at least 12% and a net NPA ratio no higher than 3% at licensing. The Hindu reports that India has 1,457 urban cooperative banks.

## Coverage

- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/business/india-business/rbi-to-reopen-window-to-grant-fresh-licences-to-urban-cooperative-banks/articleshow/132914633.cms>
- thehindu.com <https://www.thehindu.com/business/Industry/rbi-to-resume-licensing-of-urban-cooperative-banks/article71309603.ece>

Tags: Bad loans, Banking licences, Cooperative banking, RBI, Urban cooperative banks
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