RBI added that Tier 1 UCBs operating in a single district shall have minimum net worth of Rs.2 crore.

UCBs which currently do not meet the minimum net worth requirement, as above, shall achieve the minimum net worth of Rs.2 crore or Rs.5 crore (as applicable) in a phased manner.

The Reserve Bank of India revised the regulatory framework for urban co-operative banks (UCBs),

RBI added that Tier 1 UCBs operating in a single district shall have minimum net worth of Rs.2 crore.

All other UCBs (of all tiers) shall have minimum net worth of Rs.5 crore.

UCBs which currently do not meet the minimum net worth requirement, as above, shall achieve the minimum net worth of Rs.2 crore or Rs.5 crore (as applicable) in a phased manner.

Such UCBs shall achieve at least 50 per cent of the applicable minimum net worth on or before March 31, 2026 and the entire stipulated minimum net worth on or before March 31, 2028.

RBI said that Tier 1 UCBs shall maintain, as hitherto, a minimum CRAR of 9 per cent of Risk Weighted Assets (RWAs) on an ongoing basis, while Tier 2 to 4 UCBs shall maintain a minimum CRAR of 12 per cent of RWAs on an ongoing basis.

UCBs in Tier 2 to 4, which do not currently meet the revised CRAR of 12 per cent of RWAs, shall achieve the same in a phased manner. Such UCBs shall achieve the CRAR of at least 10 per cent by March 31, 2024, 11 per cent by March 31, 2025, and 12 per cent by March 31, 2026.