The Urban Cooperative Banks are regulated by

The first study of Urban Co-operative Banks was taken up by RBI in the year 1958-59. The Report published in 1961 acknowledged the widespread and financially sound framework of urban co-operative banks; emphasized the need to establish primary urban cooperative banks in new centers and suggested that State Governments lend active support to their development. Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be governed by RBI.