Reserve Bank of India (RBI) has tightened the criteria under which it processes applications from urban co-operative banks for branch authorizations and opening of automated teller machines.

Co-operative banks will need to have net non-performing assets (NPAs) of not more than 3%, which is stricter than the “less than 5%” net NPA norm so far.

Other criteria like 10% capital adequacy ratio and continuous net profit for the last three years remain, RBI said in a press release on its website.