The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on Capital Adequacy) Directions, 2025.
The following has been amended namely:-
• A UCB is permitted to issue PNCPS at face value to its members or any other person residing within its area of operation, with the prior approval of the Reserve Bank. The UCB shall submit the application seeking permission, together with 12 the Prospectus / Offer Document / Information Memorandum, through the Pravaah Portal of the Reserve Bank. A certificate from a Chartered Accountant to the effect that the terms of the offer document comply with these instructions shall also be submitted along with the application. The amounts raised through PNCPS shall comply with the following terms and conditions to qualify for inclusion as Tier 1 capital.
• A UCB may issue PDI as bonds or debentures to its members or any other person residing within its area of operation, with the prior approval of the Reserve Bank. The UCB shall submit the application seeking permission, together with the Prospectus / Offer Document / Information Memorandum the through the Pravaah Portal of the Reserve Bank. A certificate from a Chartered Accountant to the effect that the terms of the offer document comply with these instructions shall also be submitted along with the application. PDI can also be issued through conversion of a portion of existing deposits of the institutional depositors as a part of the revival plan / financial reconstruction of the UCB, with the consent of depositors as per applicable regulatory instructions. The amounts raised through PDI shall comply with the following terms and conditions to qualify for inclusion as Tier 1 capital.
[Notification no: RBI/DOR/2025-26/275 DOR.CAP.REC.194/09-18-201/2025-26]
