Parliament Question: Branch expansion of urban cooperative banks

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES RAJYA SABHA UNSTARRED QUESTION NO. 1991 ANSWERED ON TUESDAY, 10 MARCH, 2026/ 19 PHALGUNA, 1947 (SAKA) BRANCH EXPANSION OF URBAN COOPERATIVE BANKS 1991. # SHRI BABURAM NISHAD: Will the Minister of FINANCE be pleased to state: (a) whether urban cooperative banks are likely to open new branches; (b) if so, the details thereof; and (c) the steps taken by the Government to address the difficulties faced by urban cooperative banks across the country? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) and (b): Urban Cooperative Banks (UCBs) can open new branches as per their board- approved policies and in compliance with the relevant Reserve Bank of India (RBI) guidelines. (c): The Government of India and RBI have taken various measures to address the difficulties faced by UCBs across the country, which inter-alia include: • RBI has introduced the Eligibility Criteria for Business Authorization (ECBA) for UCBs with harmonized eligibility criteria for certain business authorizations / permissions / approvals. • Housing loan limits have been increased from 10% to 25% of their total loans and advances for UCBs • The Banking Regulation Act has been amended to increase the terms of directors of UCBs from 8 to 10 years • Licensing fee for onboarding of cooperative banks to Aadhar enabled Payment System (AePS) have been reduced • The National Urban Co-operative Finance and Development Corporation Limited (NUCFDC), which is a non-deposit taking Non-Banking Financial Company (NBFC), has been set up as an Umbrella Organization for Urban Cooperative Banks to provide Information Technology (IT) infrastructure and operational support • Deposit Insurance and Credit Guarantee Corporation (DICGC) insures various types of deposits up to ₹ 5,00,000 per depositor per bank (including principal and interest) for UCBs *****