New Delhi, Aug. 5 -- The Reserve Bank of India (RBI) on Wednesday announced a set of regulatory measures, including the resumption of licensing for Urban Co-operative Banks (UCBs) on an 'on-tap' basis, ending a pause of nearly two decades.

The decision follows stakeholder feedback on a discussion paper issued in January 2026.

The central bank said draft guidelines for the new licensing framework will be released shortly for public consultation before finalisation.

Review of Risk Norms for Rural Co-operative Banks

The RBI also proposed a review of prudential norms related to concentration risk management for Rural Co-operative Banks (RCBs). The existing framework is based on Credit Monitoring Arrangement (CMA) guidelines issued in 2008...