India's urban cooperative banks (UCBs) are showing signs of a cautious revival, with net non-performing assets (NNPAs) dropping significantly from 8.7% to 2.5%. This improvement is attributed to better loan recovery and collection efforts, and a reduction in high-value loans. The government has established the NUCFDC to facilitate digital overhaul and improve governance. Experts emphasize that while digitalization aids transparency, quality management and robust evaluation are also crucial for sustained NPA reduction in the sector serving over 9 crore customers.