The current status of Urban Cooperative Banks UCBs is being discussed very widely today. In this connection, here are some observations for the consideration of people related with the UCBs. However, before that, let us have a look at some statistical data. The statistics will give an idea about the role played by UCB Sector in the Indian economy, particularly Indian Banking Sector. As on 31st March 2006, there were 1,853 UCBs in the country excluding 226 UCBs which were under liquidation. Out of these 1,853 UCBs, 1,479 UCBs i.e. about 80 of the UCBs in the entire country were concentrated in five states viz. Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu.