<h1>RBI Urges Urban Co-operative Banks to Boost Governance, Embrace Tech, and Consider Small Finance Bank Conversion for Resilience.</h1> The Deputy Governor of the Reserve Bank of India emphasized the importance of strong governance and secure IT operations for Urban Co-operative Banks (UCBs) to remain relevant. He highlighted the sector's progress post-Madhavpura Bank crisis, noting improvements in asset quality and capital adequacy. However, challenges such as high Non-Performing Assets (NPAs), competition, and the need for better governance persist. The Reserve Bank encourages UCBs to adopt technology, improve governance, and consider voluntary conversion to Small Finance Banks for better resilience. Consolidation and an umbrella organization are suggested to address resource constraints and enhance operational efficiency.