If UCBs fulfill certain listed criteria, it will eligible for inclusion in the second schedule, RBI said in a notification.
All the public sector banks, private sector banks, foreign banks, regional rural banks are part of the second schedule.
As per the government's notification, with effect from April 01, 2013, only those primary co-operative banks whose demand and time liabilities are not less than Rs 750 crore would be treated as a 'financial institution' for the purpose of inclusion of UCBs in the Second Schedule of the Reserve Bank of India Act, 1934.
UCBs desirous of seeking inclusion in the schedule should fulfill certain other criteria including continuous net profit for the previous three years, capital adequacy ratio of 12 per cent and gross non-performing assets of less than 5 per cent.
Besides, the bank needs to comply with Cash Reserve Ratio and Statutory Liquidity Ratio requirements and there should be major regulatory and supervisory concerns.
Such UCBs can submit their application along with relevant documents to the Regional Office concerned of Urban Banks Department.
The RBI had last opened this window in 2004.