The number of Urban Co-operative Banks (UCBs) in India has decreased to 1,457 by March 2025, a decline from 1,926 in 2004. This consolidation, driven by the Reserve Bank of India (RBI) since 2004-05, involves merging unviable banks, closing non-viable entities, and halting new licenses. In the 2024-25 fiscal year, seven UCB mergers occurred, and eight non-scheduled UCB licenses were canceled. The RBI's tiered regulatory framework, implemented in 2022, aims to balance smaller banks' cooperative spirit with larger banks' growth ambitions.