Thus, the emerging RRBs will be able to take advantages of the economies of scale and reduce their operational costs. With the advantages of local feel and familiarity acquired by the RRBs, they would now be better placed to achieve the objectives of rural development and financial inclusion. BIS Review 46/2008  7  Urban Co-operative Banks (UCBs) 27.
The UCBs probably pose the most complex issues for a regulator since their governance is subject to the provisions of the Cooperative Societies Act, which is administered by the State governments while their banking operations are governed by the B R Act, administered by the RBI, leading to a duality of control.