The Reserve Bank of India (RBI) is set to resume licensing of urban cooperative banks (UCBs), after a pause of more than two decades, as part of developing a vibrant co-operative sector. “It has been decided to resume licensing of UCBs on ‘on tap’ basis,” RBI Governor Sanjay Malhotra announced as one of the additional measures. The RBI has also decided to review the guidelines on concentration risk management of rural co-operative banks (RCBs). The objective is to develop a vibrant co-operative sector while addressing the prudential concerns arising from concentrated lending, according to the Governor. RBI to review guidelines on interest rates on advancesThe RBI has proposed to rationalise the regulatory framework on interest rates for all regulated entities (REs) on an in-principle basis.