This new framework replaces the previous “Financially Sound and Well Managed” norms with a set of harmonized Eligibility Criteria for Business Authorization (ECBA). To be considered compliant with the ECBA, a bank must meet conditions such as having regulatory minimum capital, a net NPA of no more than 3%, and a net profit for the past two financial years. The directions categorize Urban Co-operative Banks (UCBs) into a four-tiered system based on their deposit size and outline specific rules for business activities like expanding their area of operation, opening new branches, and offering doorstep banking. For instance, a UCB that meets the ECBA can expand its operations to its entire district of registration or up to three additional districts without prior RBI approval. The comments/ suggestions from stakeholders are invited.