Urban Cooperative Banks
The term Urban Cooperative Banks (UCBs), although not formally defined, refers to the primary cooperative banks located in urban and semi-urban areas.
These banks, until 1996, were allowed to lend money only to non-agricultural purposes. This distinction remains today. These banks have traditionally been around communities, localities working out in essence, loans to small borrowers and businesses.
Today their scope of operation has expanded considerably. The urban co-operative banks can spread operations to other States and such banks are called as multi state cooperative banks.
They are governed by the Banking Regulations Act 1949 and Banking Laws (Co- operative Societies) Act, 1965. The total number of UCBs stood at 1,618 as on 31st March 2012.
Scheduled UCBs are banks included in the Second Schedule of the RBI Act, 1934 and include banks that have paid-up capital and reserves of not less than`5 lacs and carry out their business in the interest of depositors to the satisfaction of the Reserve Bank.
Urban Cooperative Banks cs professional banking law notes elective subject