The Reserve Bank of India (RBI) is preparing to restart the issuance of fresh licences for urban cooperative banks. The decision follows discussions with relevant stakeholders on a paper released earlier in January 2026. According to the reports, the RBI will open a continuous window for new licences, aiming to streamline and improve the application process.
Sources also indicate that eligibility requirements will be tightened compared with earlier rules. Prospective entities are expected to meet stricter qualifying conditions and maintain higher capital reserves. This is framed as a measure to support financial accessibility and to encourage competition within the sector.
Business Line specifies that applications are limited to existing multi-state credit cooperative societies that have at least 10 years of operations. It also states that eligible applicants must have deposits of at least ₹10,000 crore and a minimum net worth of ₹300 crore.
Overall, the RBI’s move is aimed at enabling new urban cooperative banks through a clearer, ongoing licensing process, while ensuring applicants are adequately capitalized and meet defined operational and financial benchmarks.
