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Business
Ministry Urges RBI to Grant Licences for More Urban Cooperative Banks
✍️ Indian Express
🗓 28 Jul 2026, 06:49 AM
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The Ministry of Finance has requested the Reserve Bank of India to issue licences for additional urban cooperative banks, aiming to broaden financial inclusion in city areas.
The Ministry of Finance has formally asked the Reserve Bank of India (RBI) to issue licences for more urban cooperative banks, a move that could expand banking services in metropolitan areas.
Secretary Ashish Kumar Bhutani conveyed the ministry’s stance, noting that the current number of urban cooperative banks is insufficient to meet growing demand for credit and savings facilities.
The RBI has historically granted licences to a limited number of cooperative banks, primarily in rural regions. The ministry believes that extending licences to urban entities will improve access to banking for small businesses and low‑income households.
The request is part of a broader effort to strengthen the financial sector’s reach, with the government monitoring the RBI’s response and potential regulatory adjustments.
Secretary Ashish Kumar Bhutani conveyed the ministry’s stance, noting that the current number of urban cooperative banks is insufficient to meet growing demand for credit and savings facilities.
The RBI has historically granted licences to a limited number of cooperative banks, primarily in rural regions. The ministry believes that extending licences to urban entities will improve access to banking for small businesses and low‑income households.
The request is part of a broader effort to strengthen the financial sector’s reach, with the government monitoring the RBI’s response and potential regulatory adjustments.