RBI Prepares to Re-open On-Tap Licensing for Urban Co-operative Banks After Two Decades
Under proposed norms, eligibility is restricted to existing Multi-State Credit Co-operative Societies (CCS) meeting strict financial criteria.
Key entry criteria include 10 years of operational history, minimum deposits of Rs 10,000 crore, minimum net worth of Rs 300 crore, CRAR of at least 12%, and maximum Net NPA of 3%.
The licensing will operate on an 'on-tap' basis, enabling qualified institutions to apply to the central bank at any time.
Exam Perspective: Re-opening UCB licenses aims to modernize co-operative banking governance and strengthen financial inclusion across urban centers.
Key Facts / Static GK
RBI Headquarters: Mumbai, Maharashtra
Primary Regulator for UCBs: Banking Regulation Act, 1949
Q Practice Quiz — 6 August 2026
1. Who has been appointed as the new Representative of India on the Council of the International Civil Aviation Organization (ICAO)?
Explanation: Satyajit Mohanty, who served as Joint Secretary in the Ministry of Defence, has been appointed as the new Representative of India on the Council of ICAO for a three-year tenure.
2. The Appointments Committee of the Cabinet (ACC) recently approved a one-year extension for which Union Cabinet Secretary?
Explanation: The ACC approved a one-year extension for both Cabinet Secretary T. V. Somanathan and Union Home Secretary Govind Mohan.
3. Who has been named as the Chief Executive Officer and Managing Director of Air India, succeeding Campbell Wilson?
Explanation: Air India appointed former Ethiopian Airlines Group CEO Tewolde Gebremariam as its new CEO and MD, taking over from Campbell Wilson.
4. Regarding the proposed RBI guidelines for licensing Urban Co-operative Banks (UCBs), consider the following statements: 1. Fresh UCB licensing was halted by RBI in 2004. 2. Eligible entities must possess a minimum net worth of Rs 300 crore and a minimum operational history of 10 years. 3. Maximum Net NPA ratio permissible for eligibility is set at 5%. Which of the statements given above are correct?
Explanation: Statements 1 and 2 are correct. Statement 3 is incorrect as the maximum Net NPA ratio allowed is 3%, not 5%.
5. According to the India Celebrity Brand Valuation Report 2025 by Kroll, who emerged as India's most valued celebrity brand?
Explanation: Shah Rukh Khan emerged as India's most valued celebrity brand in 2025 with an estimated valuation of $177.9 million, climbing from third position in 2024.
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