New Delhi: The Reserve Bank of India (RBI) Governor on January 19 held a meeting with chairpersons and managing directors and chief executive officers of select urban cooperative banks (UCBs), reaffirming the central bank’s focus on strengthening the cooperative banking sector and expanding credit delivery to underserved segments. The interaction, held in Mumbai, marked the first such engagement since March 2025.
Representatives from the National Urban Cooperative Finance and Development Corporation Ltd and the National Federation of Urban Co-operative Banks & Credit Societies Ltd were present, along with Deputy Governors Swaminathan J. and S C Murmu and senior RBI officials.
In his address, the Governor highlighted the continued relevance of UCBs in advancing financial inclusion, particularly in semi-urban and underserved areas. He referred to a series of policy initiatives undertaken since the last interaction and said these measures are expected to act as enablers for the sector’s healthy growth.
At the same time, the Governor cautioned banks to maintain high standards of governance, adopt robust underwriting practices and exercise diligent oversight over asset quality. He also emphasised a customer-centric approach, ethical conduct and timely grievance redressal to preserve trust in the cooperative banking system.
During the interactive session, industry participants shared feedback and suggestions on policy and operational issues affecting the UCB sector, the RBI said