Aiming to strengthen 1,514 urban co-operative banks, the Reserve Bank has notified four key measures.Apart from the key measures,it has decided to extend the timeline for UCBs to achieve Priority Sector Lending (PS

Aiming to strengthen 1,514 urban co-operative banks, the Reserve Bank has notified four key measures, including giving them two years more to meet the priority sector lending targets.    In order to expand their business, UCBs can now open new branches up to 10 per cent (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation.   UCBs have to get the policy approved by their board and comply with the Financially Sound and Well Managed (FSWM) Norms.   UCBs can also do One-Time Settlement at par with commercial banks.The RBI has decided to extend the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e. up to March 31, 2026.The deadline to achieve PSL target of 60 per cent, which was March 31, 2023, has also been extended to March 31, 2024. The excess deposits, if any, after clearing the shortfall of PSL during FY 2022-23 will also be refunded to the UCB.