8. The number of UCBs declined from 1926 as at end-March 2004 to 1770 by end-March 2008. The deposits and advances of urban banks increased only marginally during the same period from ₹ billion and ₹ billion to ₹ billion and ₹ billion,3 respectively, posting an average annual growth of 9% in deposits and 10% in advances.4 9.
Reserve Bank took several steps to strengthen the sector during this period. Most important among them is the Memoranda of Understanding (MoU) with all State Governments and the Central Government. In order to improve the financial soundness of the UCB sector, Reserve Bank of India entered into Memoranda of Understanding (MoU) with all State Governments and the Central Government since 2005.