Urban cooperative banks (UCBs) play a key role in Indian banking, especially in small towns and cities. These changes have already made life harder for many banks and are raising new questions about the very purpose of cooperative banking in India. The central bank picks the auditors and enforces audit norms for all cooperative banks. To truly serve their members and the national economy, cooperative banks need a careful balance. Strong, local banks matter for the nation’s growth, and trust in their systems cannot be built if they are not allowed to run according to their own best traditions.