RBI has proactively helped UCBs; cooperatives should look at regulator differently: Shah
Union Minister Amit Shah has encouraged urban cooperative banks to view the Reserve Bank of India as a proactive partner rather than a restrictive regulator. He highlighted recent policy relaxations and the upcoming 'on-tap' licensing as evidence of the RBI's support for the sector.
Why it matters
Improving the relationship between the central bank and cooperative banks is crucial for the stability and growth of India's rural and urban financial infrastructure.
Union Minister of Cooperation Amit Shah on Saturday (August 8, 2026) urged urban cooperative banks (UCBs) to look at the RBI from a "different viewpoint", underlining that the central bank has "proactively helped" the sector in recent times.
Speaking at the inauguration of a new office building of the National Urban Cooperative Finance and Development Corporation (NUCFDC) at the BSE in Mumbai, Mr. Shah also said that when it comes to the safety of money, no other segment is as safe for lenders as small borrowers.
"I know of your experience till now. RBI looks at you from a particular viewpoint, and UCBs also look at RBI from a different viewpoint. But we have to come out of it," Mr. Shah told the audience comprising executives from over 1,400 UCBs and other stakeholders.
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