As part of the Reserve Bank of India’s continued engagement with regulated entities, the RBI Governor Sanjay Malhotra held a meeting yesterday in Mumbai with the Chairpersons and Managing Directors & Chief Executive Officers (MDs & CEOs) of select Urban Cooperative Banks (UCBs). The previous such meeting was held on March 19, 2025. The participants included representatives from the National Urban Cooperative Finance and Development Corporation Limited and the National Federation of Urban Co-operative Banks & Credit Societies Limited. The meeting was also attended by Deputy Governors and other senior officers of the Reserve Bank.
In his remarks, the Governor highlighted the continued relevance of UCBs in credit delivery particularly to the underserved areas and in expanding financial inclusion. The Governor also briefly touched upon the various policy initiatives that have been undertaken by Reserve Bank relating to the co-operative banking sector since the previous interaction, and expressed confidence that these enablers will help the sector to become stronger and grow in a healthy manner. He underscored the importance of maintaining high standards of governance, robust underwriting practices and diligent oversight over asset quality. Further, he emphasised the necessity of adopting customer-centric approach, following ethical practices, and timely grievance resolution to maintain customer trust in the sector.