The present investigation was the high problems faced by Urban Cooperative Banks (UCBs) in Kollam District, Kerala. Firstly, explain briefly the problems of dual control by the State Government and the RBI. Secondly, discuss the details about limited area of operation. Thirdly, deliberate the key problems for violation of financial norms, poor management and poor quality services. Fourthly, analyse the problems for lack of modernisation, increasing over dues, lack of planning and coordination, fifthly to describe the details of political interference and staff problem and prospects. It concludes with an overview of important area from the literature.