The Ministry of Finance has been holding several pre-budget meetings with different shareholders of the market and industry experts. The Finance Minister also had a pre-budget meeting with the trade union leaders, where the representatives voiced their strong disagreement against the privatization of banks. This year, several banks including co-operative banks, non-scheduled commercial banks, and payment banks have been in the limelight for different reasons.  

Here are the details of different types of banks and the eligibility criteria they need to fulfill to be listed under the Reserve Bank of India (RBI).

co-operative bank is a small-sized, financial entity, with its members being the owners and customers of the Bank. They are registered under the States Cooperative Societies Act. 

They are broadly classified into: 

Urban co-operative banks (UCB): These banks are co-operative banks in urban and semi-urban areas.  RBI 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 in July’22. 
State co-operative banks: They are the highest-level cooperative banks in each of the states. There are around 24 state co-operative banks.  

 
2. Non-scheduled Banks   

These banks are not listed in the 2nd schedule of the RBI act, 1934. Thus, they don’t need to fulfill all the criteria under clause 42 but need to follow specific guidelines as laid down by RBI. Banks with a reserve capital of less than 5 lakh rupees are classified as non-scheduled banks. There are three such banks in India which include Capital Local Area Bank Ltd - Phagwara (Punjab), Krishna Bhima Samruddhi Local Area Bank Ltd, Mahbubnagar (Andhra Pradesh), and Subhadra Local Area Bank Ltd., Kolhapur (Maharashtra)