New Delhi, Nov. 16 -- The National Urban Co-operative Financial and Development Corp. Ltd (NUCFDC)-the umbrella body for India's urban cooperative banks (UCBs)-plans to request the banking regulator to allow smaller UCBs with net worths below Rs.50 crore to offer digital services, including internet banking.

Under Reserve Bank of India (RBI) regulations, only banks with a net worth of more than Rs.50 crore are allowed to offer digital services and internet banking facilities. However, more than half of the 1,462 UCBs-which collectively hold deposits of Rs.5.5 trillion-have net worths below Rs.50 crore.

"We are studying the regulation, and we will seek the approval from the RBI that if UCBs are part of a centralized quality infrastructur...