Re-categorization of urban cooperative banks (UCBs)

 Re-categorization of urban cooperative banks (UCBs) in India refers to the process of classifying these banks based on their deposit size, business model, and other relevant factors. This process is done to improve the health and stability of the UCB sector, and to ensure that depositors' money is protected.

The Reserve Bank of India (RBI) is responsible for re-categorizing UCBs in India. The RBI classifies UCBs into three categories based on their deposit size:

• Small UCBs: UCBs with deposit size up to ₹50 crore.
• Mid-sized UCBs: UCBs with deposit size between ₹50 crore and ₹500 crore.
• Large UCBs: UCBs with deposit size above ₹500 crore.

The categorization of UCBs is based on their deposit size and business model, as well as their financial performance, asset quality, and governance standards. The RBI periodically reviews the categorization of UCBs and re-categorizes them as necessary.

The re-categorization of UCBs is aimed at improving their health and stability, ensuring that depositors' money is protected, and promoting the growth of the UCB sector in India.