RBI prescribes Categorization of UCBs for Regulatory Purposes based on their deposit size

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  • Last Updated on 3 December, 2022

Categorization of UCBs

Circular No. RBI/2022-23/144 DOR.REG.No.84/07.01.000/2022-23, Dated 01.12.2022

The RBI has notified that Urban Co-operative Banks (UCBs) shall be categorized into following four tiers for regulatory purposes. Tier 1 shall consist of All unit UCBs and salary earners’ UCBs, and all other UCBs having deposits up to Rs. 100 crore; Tier 2 – UCBs with deposits more than Rs. 100 crore and up toRs. 1000 crore; Tier 3 – UCBs with deposits more thanRs. 1000 crore and up to Rs. 10,000 crore; Tier 4 – UCBs with deposits more than Rs. 10,000 crore.

Further, deposits shall be reckoned as per audited balance sheet as on 31st March of the immediately preceding financial year. Further, if a UCB transits to a higher Tier on account of increase in deposits in any year, it may be provided a glide path of up to a maximum of three years, to comply with higher regulatory requirements, if any, of the transited higher Tier.

Click Here To Read The Full Circular

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