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How many tiers are there in urban cooperative banks according to the RBI's regulatory structure?
Question

How many tiers are there in urban cooperative banks according to the RBI's regulatory structure?

A.

2 tiers

B.

3 tiers

C.

4 tiers

D.

5 tiers

Correct option is C

The Reserve Bank of India (RBI) introduced a 4-tier regulatory structure for Urban Cooperative Banks (UCBs) to streamline their functioning and ensure a more stable banking environment. This tiered system is intended to improve oversight and ensure that UCBs can sustain operations effectively based on their size and complexity. The four tiers are as follows:
Tier 1: UCBs with deposits up to ₹100 crore.
Tier 2: UCBs with deposits between ₹100 crore and ₹1,000 crore.
Tier 3: UCBs with deposits between ₹1,000 crore and ₹10,000 crore.
Tier 4: UCBs with deposits exceeding ₹10,000 crore.

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