The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and Regulatory Classification) Guidelines, 2025.
The following has been amended namely:-
• The Reserve Bank of India had constituted the Expert Committee on Urban Cooperative Banks to examine the issues in the urban cooperative banking sector and to review the regulatory/ supervisory approach for strengthening the sector. Based on the recommendations of the Expert Committee, RBI had released the Revised Regulatory Framework for Urban Co-operative Banks (UCBs) on July 19, 2022. Accordingly, a four-tiered regulatory framework was issued on December 01, 2022, replacing the earlier two-tiered framework, for categorization of UCBs. This categorization serves as the basis for differentiated regulatory prescriptions to strengthen the financial soundness of the UCBs.
• The deposits referred to above shall be reckoned as per the audited balance sheet as on 31st March of the immediate preceding financial year.
• If a UCB transits to a higher Tier on account of an increase in deposits in any year, it may be provided a glide path of up to a maximum of three years, to comply with the higher regulatory requirements, if any, of the transited higher Tier.
[Notification no. RBI/DOR/2025-26/269]
