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RBI hikes capital adequacy ratio for urban cooperative banks to 12%

Rule applies to banks with deposits above Rs 100 crore; glide path till March 2026, to meet revised CAR norm in phases for UCBs that do not meet it currently

Reserve Bank of India, RBI
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Reserve Bank of India

Abhijit Lele Mumbai
The Reserve Bank of India has hiked the minimum capital adequacy ratio (CAR) for Urban Cooperative Banks (UCBs) with deposits above Rs 100 crore to 12 per cent from the earlier floor of 9.0 per cent.

It has provided a glide path till March 2026 to meet revised CAR norm in phases for UCBs that don't meet it currently.

It has retained the norm of a minimum CAR of 9 per cent for tier-1 banks (those with deposits up to Rs 100 crore).

RBI in a statement said it has decided to adopt a simple four-tiered regulatory framework with

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