New Delhi, Jan. 19 -- Emphasizing that strong governance underpins the stability and credibility of the cooperative banking sector, Reserve Bank of India governor Sanjay Malhotra on Monday urged urban co-operative banks (UCBs) to uphold high standards of oversight, underwriting discipline and asset quality management.

The governor made the remarks at a meeting in Mumbai with chairpersons, managing directors and chief executive officers of select urban co-operative banks, as part of RBI's ongoing engagement with regulated entities. The previous such interaction was held on 19 March 2025.

In his address, Malhotra noted the continued relevance of UCBs in credit delivery-particularly in the underserved and semi-urban areas-and their role in...