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RBI plans cut to capital rules for urban cooperative bank licences to spur more banks
Economy
Published on 24 April 2026
From ₹300 crore to ₹200 crore — who benefits next
The RBI is considering lowering the minimum capital requirement for new urban cooperative bank licences, proposing a cut from ₹300 crore to ₹200 crore. The move aims to make licensing more achievable and invigorate the co-operative banking sector, potentially opening the door for more institutions—though regulators will weigh financial stability alongside expansion.
- RBI is considering reducing minimum capital for urban co-operative banks
- Proposed cap drops from ₹300 crore to ₹200 crore
- Goal is to accelerate growth in the co-operative banking space
- Lower entry capital may widen access to new bank licences
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times