RBI Revises Prudential Norms for UCB, Raises Small Loan and Housing Loan Limits
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- By Chetan Kulasri
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- Last Updated on 27 February, 2025
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Circular No. RBI/2024-25/118 DOR.CRE.REC.62/07.10.002/2024-25, Dated: 24.02.2025
RBI has revised prudential norms for Urban Co-operative Banks (UCBs), raising small loan limits to Rs. 25Lac or 0.4% of Tier I capital, whichever is higher and subject to a max of 3 Cr. per borrower. Further, Housing loans will now have revised exposure limits, with individual caps of Rs. 60L – Rs. 3Cr based on UCB tier. Aggregate exposure to residential mortgages (non-priority) is capped at 25% and real estate at 5% of total advances. The above-mentioned changes are applicable with immediate effect.
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