LCode Technologies

Mobile banking, UPI switch and IMPS switch for co-operative banks

By LCode Technologies · Updated

In short

Co-operative banks need software that gives customers mobile banking, UPI and IMPS while meeting RBI's digital channel and cybersecurity rules. LCode Technologies counts co-operative banks among its 75+ enterprise clients and offers an omni-channel digital banking platform, an NPCI-connected UPI & IMPS switch, the mPassbook app and D-Secure mobile app security.

Key facts

Who this coversUrban co-operative banks (UCBs), state co-operative banks and district central co-operative banks
Digital channel rulesRBI Digital Banking Channels Authorisation Directions, 2025 for UCBs [2] and rural co-operative banks [3], effective 1 January 2026
Cybersecurity rules for UCBsRBI Cybersecurity, Technology: Risk, Resilience and Assurance Framework Directions, 2026 [4]
Mobile app security rules for UCBsRBI Digital Payment Security Controls Directions, 2026 [5]
Relevant LCode productsDigital Banking – Omni Channel, UPI & IMPS Switch, mPassbook, D-Secure

Which LCode products fit co-operative banks?

NeedLCode productWhat it provides
A mobile banking app for co-operative banks, plus net banking for retail and corporate customersDigital Banking – Omni ChannelMobile, Web, Agency and USSD channels with maker-checker controls, Video KYC and a single integration to the core banking system.
A UPI switch for co-operative banks, with an IMPS switch for urban co-operative banks and rural co-operative banksUnified Payment Interface (UPI) & IMPS SwitchConnects the bank to NPCI for real-time IMPS and UPI payments, with a Version 2.0 certified UPI switch and PSP app.
An e-passbook (digital passbook) for account holdersmPassbookA view-only app for savings, recurring deposit, fixed deposit and loan accounts, with statement generation and offline access.
Protecting the bank's mobile banking appD-Secure Mobile App SecurityRuntime application self-protection across binary, network, transport, authentication and storage layers, including root, jailbreak, tampering and debugger detection.

How does RBI classify urban co-operative banks?

RBI places urban co-operative banks in four tiers by deposit size for regulatory purposes, from Tier 1 for smaller and unit banks to Tier 4 for UCBs with deposits above ₹10,000 crore [1].

  • Tier 1: all unit UCBs and salary earners' UCBs, whatever their deposit size, and all other UCBs with deposits up to ₹100 crore [1].
  • Tier 2: UCBs with deposits of more than ₹100 crore and up to ₹1,000 crore [1].
  • Tier 3: UCBs with deposits of more than ₹1,000 crore and up to ₹10,000 crore [1].
  • Tier 4: UCBs with deposits of more than ₹10,000 crore [1].

State co-operative banks and central co-operative banks are rural co-operative banks, as defined in the National Bank for Agriculture and Rural Development Act, 1981, and have their own RBI Directions on digital banking channels [3].

Do co-operative banks need RBI approval to offer mobile or internet banking?

For transactional facilities, yes. From 1 January 2026, urban and rural co-operative banks need RBI's prior approval to launch transactional digital banking, while view-only facilities are intimated to RBI after board approval [2][3].

  • View-only facilities are services that do not change a customer's assets or liabilities, such as balance enquiry and account statement download. Loans, fund transfers and other facilities that create a liability or move funds cannot be offered by a bank with view-only digital channels [2].
  • Transactional facilities need RBI's prior approval. The eligibility criteria include core banking and public-facing IT infrastructure able to handle IPv6 traffic, compliance with minimum regulatory CRAR, paid-up capital or net worth of at least the applicable licensing requirement or ₹50 crore, whichever is higher, and adequate financial and technical capability [2].
  • Rural co-operative banks also forward a copy of their intimation to RBI to NABARD [3].

This summary is for general information and is not legal or compliance advice. Read the full Directions for your category of bank before planning a launch.

How do UPI, IMPS and mobile banking affect a UCB's cybersecurity obligations?

RBI's 2026 cybersecurity Directions place each UCB in one of four levels based on its digital depth and interconnectedness to payment systems. Each level above Level I adds further chapters of requirements, so new digital channels can raise a UCB's obligations [4].

  • Level I applies to every UCB, whatever digital services it offers [4].
  • Level II applies to a UCB that is a sub-member of the centralised payment systems (RTGS and NEFT) and offers internet banking (view or transaction based), offers mobile banking through a smartphone app, or is a direct member of CTS, IMPS or UPI [4].
  • Levels III and IV apply to UCBs with deeper connections to payment systems and add further requirements [4].

Separately, RBI's Digital Payment Security Controls Directions for UCBs say the bank shall ensure device binding of its mobile application and deactivate older app versions within six months of releasing a newer one. Checking for rooted or jailbroken devices is something a UCB may explore, not a mandatory control [5].

What should a co-operative bank check before choosing mobile banking software or a UPI switch provider?

Check that the platform supports the channels you plan to launch, integrates with your core banking system, fits the way your bank takes part in UPI and IMPS, and includes the mobile app controls RBI expects.

  • Channels and authorisation: which services will be view-only and which transactional, and whether the software lets you launch them in that order [2].
  • Core banking integration: how the platform connects to your core banking system and which transactions post in real time.
  • Payments: whether your bank will join IMPS and UPI as a direct member or take part another way, and whether the switch supports that model.
  • Mobile app security: device binding, old-version deactivation, code obfuscation and whether to add root and jailbreak checks [5].
  • Cybersecurity level: how each new channel changes your level under RBI's framework and the controls that follow [4].
  • Support: implementation, testing and ongoing changes as RBI and NPCI requirements evolve.

Frequently asked questions

Does LCode Technologies work with co-operative banks?

Yes. Co-operative banks are one of the sectors LCode Technologies serves among its 75+ enterprise clients, alongside public sector, private sector and foreign banks, NBFCs, microfinance institutions and trustee companies.

Which LCode products give co-operative banks a mobile banking app, net banking and UPI?

Digital Banking – Omni Channel provides a mobile banking app, net banking, agency banking and USSD banking; the UPI & IMPS Switch is an NPCI certified UPI switch and IMPS switch with a Version 2.0 UPI PSP app; and mPassbook is an e-passbook app for account holders.

Do co-operative banks need RBI approval for mobile banking?

For transactional mobile or internet banking, yes. From 1 January 2026, urban and rural co-operative banks need RBI's prior approval under the Digital Banking Channels Authorisation Directions, 2025. Eligibility includes core banking, IPv6-ready infrastructure, minimum CRAR and paid-up capital or net worth of at least the licensing requirement or ₹50 crore, whichever is higher. View-only facilities are intimated to RBI instead.

How does RBI classify urban co-operative banks?

Into four tiers. Tier 1 covers unit and salary earners' UCBs and other UCBs with deposits up to ₹100 crore; Tier 2 covers deposits above ₹100 crore up to ₹1,000 crore; Tier 3 above ₹1,000 crore up to ₹10,000 crore; and Tier 4 above ₹10,000 crore.

Does offering UPI or mobile banking change a UCB's cybersecurity level?

It can. Under RBI's 2026 cybersecurity Directions, a UCB that is a sub-member of RTGS and NEFT moves to at least Level II if it offers internet banking, offers mobile banking through a smartphone app, or is a direct member of CTS, IMPS or UPI. Each higher level adds requirements.

Is root detection mandatory for a co-operative bank's mobile app?

No. RBI's Digital Payment Security Controls Directions for UCBs say a bank may explore disallowing its app on rooted or jailbroken phones. Device binding of the mobile application, however, is mandatory.

Which LCode products are relevant for co-operative banks?

Digital Banking – Omni Channel for mobile, web, agency and USSD banking; the UPI & IMPS Switch for NPCI payments; mPassbook for a digital passbook; and D-Secure for mobile banking app security.

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Related guides

Sources

  1. Reserve Bank of India (Urban Co-operative Banks – Licensing, Scheduling and Regulatory Classification) Guidelines, 2025 (RBI/DOR/2025-26/269) — Reserve Bank of India
  2. Reserve Bank of India (Urban Co-operative Banks – Digital Banking Channels Authorisation) Directions, 2025 (RBI/DOR/2025-26/385, 28 Nov 2025) — Reserve Bank of India
  3. Reserve Bank of India (Rural Co-operative Banks – Digital Banking Channels Authorisation) Directions, 2025 (RBI/DOR/2025-26/386, 28 Nov 2025) — Reserve Bank of India
  4. Reserve Bank of India (Urban Co-operative Banks – Cybersecurity, Technology: Risk, Resilience and Assurance Framework) Directions, 2026 (RBI/DoS/2026-27/437, 31 Jul 2026) — Reserve Bank of India
  5. Reserve Bank of India (Urban Co-operative Banks – Digital Payment Security Controls) Directions, 2026 (RBI/DoS/2026-27/438, 31 Jul 2026) — Reserve Bank of India