RBI asks UCBs to be mindful of their responsibilities for depositors

The meeting was a part of the Reserve Bank’s series of engagements with its Regulated Entities. File
| Photo Credit: Youtube/RBI via PTI Photo

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday (March 19, 2025) urged Chairmen, MDs and CEOs of Urban Cooperative Banks (UCBs) to be mindful of their responsibilities, particularly in view of the trust reposed on them by the depositors.

He stressed the importance of maintaining high standards of customer service to build and retain trust. “UCBs were also advised to ensure that they remain operationally resilient including against IT and cyber-related risks,” the RBI said in a statement.

Mr. Malhotra said the RBI would continue to support the sector in its growth ambitions.

The Governor held a meeting with the Chairmen, Managing Director & Chief Executive Officers of select UCBs across all Tiers operating in different parts of the country.

The representatives from industry bodies namely National Urban Cooperative Finance and Development Corporation Ltd (NUCFDC) and the National Federation of Urban Co-operative Banks & Credit Societies Ltd. (NAFCUB) also participated in the meeting.

The meeting was a part of the Reserve Bank’s series of engagement with its Regulated Entities.

In his opening remarks, the governor acknowledged the important role of UCBs in serving the people at the grassroots level and deepening financial inclusion.

“The participants shared their feedback and gave various suggestions during the interactive session of the meeting,” the RBI said.