This document is Unstarred Question No. †1382, answered on February 9, 2026 by the Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary), regarding Urban Cooperative Banks (UCBs) in Delhi.
The question asked about the role of UCBs in supporting small traders, the middle class, local entrepreneurs, and the self-employed. It also inquired about plans to open UCBs in cities with a population over two lakh, and specifically in Delhi.
The response states that UCBs play an important role in the banking ecosystem by providing credit and facilities to small traders, the middle class, local entrepreneurs and the self-employed, operating under cooperative principles and regulatory framework.
The Government of India has no current proposal to open Urban Co-operative Banks in cities with a population of more than two lakh. RBI has, however, published a discussion paper on licensing of new UCBs on January 13, 2026, seeking feedback from stakeholders. There are 14 UCBs functional in Delhi, registered under the Delhi Cooperative Societies Act 2003, as per information obtained from Registrar of Cooperative Societies, New Delhi.
Key Entities Referenced
Urban Cooperative Banks: Financial institutions providing banking services, particularly in urban areas, with a focus on small traders, the middle class, and the self-employed.
Reserve Bank of India (RBI): India's central bank, which published a discussion paper on licensing of new Urban Cooperative Banks.
Delhi Cooperative Societies Act 2003: Law under which 14 Urban Cooperative Banks are registered in Delhi.
Ministry of Finance: The government ministry responsible for financial matters and overseeing the Urban Cooperative Banks.
Delhi: Location where a plan to open Urban Co-operative Banks is being considered.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. †1382
ANSWERED ON MONDAY, 09 FEBRUARY, 2026/ 20 MAGHA, 1947 (SAKA)
Urban Cooperative Banks in Delhi
†1382. SHRI RAMVIR SINGH BIDHURI:
Will the Minister of FINANCE be pleased to state:
(a) the manner in which Urban Co-operative Banks are serving as a means for the upliftment
of small traders, the middle class, local entrepreneurs and the self-employed;
(b) whether the Government has any plan to open Urban Co-operative Banks in all cities having
a population of more than two lakh;
(c) if so, the details thereof;
(d) whether Urban Co-operative Banks are also proposed to be opened in Delhi under this plan;
and
(e) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): Urban Cooperative Banks (UCBs) play an important role in the banking ecosystem by
providing credit and other facilities to small traders, the middle class, local entrepreneurs and
the self-employed in accordance with cooperative principles and the applicable regulatory
framework.
(b) to (e): No such proposal is under consideration with the Government of India. However,
RBI has published a discussion paper on licensing of new UCBs on January 13, 2026, for
comments/feedback from concerned stakeholders.
As per information obtained from Registrar of Cooperative Societies, New Delhi, there are a
total of 14 UCBs functional in Delhi which are registered under the Delhi Cooperative Societies
Act 2003.
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