Bank News – In March 2025, the RBI, under Governor Sanjay Malhotra, permitted Urban Cooperative Banks (UCBs) to open up to 10% of their existing branches (maximum five) annually without prior approval, as highlighted in X posts by BJP4India.
Previously restricted, this policy shift enables UCBs to expand their footprint, particularly in underserved urban and semi-urban areas.
The move aims to enhance financial access, support small businesses, and strengthen the cooperative banking model. UCBs, with over 1,500 banks serving 8.5 crore customers, are expected to leverage this to boost deposits and lending.
Industry experts praised the decision, noting its potential to improve competitiveness, though robust risk management remains critical to ensure stability in the sector.
