Urban Cooperative Banks (UCBs) are primary cooperative banks located mainly in urban and semi-urban areas. 

Features

• They provide credit and banking services to small traders, salaried persons, professionals, MSMEs and other local borrowers.
• Registered under the relevant State Cooperative Societies Act or the Multi-State Cooperative Societies Act, 2002.
• Operate on cooperative principles such as mutual help, democratic decision-making and open membership.
• Provide banking services—deposits, loans, payments and other facilities—similar to commercial banks.
• Traditionally focused on small borrowers and middle- and lower-income groups.
• Their banking functions are regulated and supervised by the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949

Four-Tier Regulation by RBI

Source: The Hindu