The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Rural Co-operative Banks – Credit Facilities) Directions, 2025.
The following has been stated namely: -
• The Directions apply to State Cooperative Banks and Central Cooperative Banks and require them to adopt Board-approved policies covering digital lending, lending against gold/silver, microfinance, non-fund-based facilities, and other credit products.
• In digital lending, banks shall do due diligence on Lending Service Providers (LSPs), ensure contracts clearly define roles, maintain borrower protection and data privacy, report digital loans to credit information companies, and retain responsibility for LSP actions.
• Lending against gold and silver collateral is permitted with specified Loan-to-Value (LTV) caps, purity valuation norms, weight ceilings for pledged items, and restrictions on collateral ownership.
• Microfinance loans are defined as collateral-free credit to households with annual income up to ₹3 lakh, with limits on repayment obligations (not exceeding 50% of household income).
• The Directions also address non-fund-based facilities, housing loans, collateral management rules, data reporting, and prescribe that existing instructions will continue to apply until transition to the new regime.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/302 DOR.CRE.REC.No. /07-01-006/2025-26]
