Kolkata: The Reserve Bank of India said that credit co-operative societies with a minimum capital of Rs 300 crore and Rs 10000 crore deposit base and backed by sound financial credentials can apply for urban cooperative bank license, as the central bank has decided to resume giving new license on tap after a gap of two decades.The applicants must demonstrate a positive and progressive trend inoperating and financial parameters in the previous five years, with capital to risk weighted assets ratio over 12% and net non-performing assets ratio below 3% as on March 31 of the previous financial year of application, the central bank said. Societies more than 10 years of existence are eligible to apply.Also Read: Plastic notes in India get a likely release date: Here's what RBI Governor saidThese are according to the draft guidelines released by RBI Wednesday inviting comments from stakeholders by September 5, 2026.A registration under the Multi-State Co-operative Societies Act, 2002 is also a prerequisite as RBI would initially consider societies with multi-state presence.The central bank said that no member of the cooperative society should have a shareholding of more than 5%. If there are shareholders with more than 5% holding, the applicant has to propose an action plan to reduce to 5% or below before final license.The regulator had put issuance of fresh licenses on hold after it found that a large number of the new UCBs had turned financially weak within a short period. A cooperative society that has been given a banking licence as a primary cooperative bank is commonly referred to as a UCB.Now, societies willing to apply for a UCB license will be required to submit a detailed business plan stating the business objectives especially related to financial inclusion. The application should also cover a business viability roadmap with financial projections for five years, target locations for branch openings, proposed product lines among others.RBI said it would assess the ‘fit and proper’ status of the board of directors before giving its approval.As of March 31, 2025, the number of UCBs stood at 1,457, with total aggregate assets of Rs 7.38 lakh crore and total deposits of Rs 5.84 lakh crore.Their average capital to risk-weighted asset ratio stood at 18%, with 92% of them having the ratio over 12% -- the regulatory minimum for tier-2 to tier-4 UCBs.The asset quality of UCBs, measured by gross non-performing assets ratio, was 6.25 as of March 31, 2025, with net non-performing assets, or bad loans, at 0.7%, as compared with 6.02% and 2.66%, respectively.Their average net interest margin improved to 3.62% from 2.97% over the 10-year period.UCBs were brought under the RBI’s ambit in 1966 by an amendment to the Banking Regulation Act, 1949. They form the largest cohort of banks by number regulated by the RBI.