The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) Directions, 2025.
The following has been amended namely:-
• The bank shall put in place a comprehensive Board-approved policy on Credit Risk Management. The policy shall, inter alia, cover aspects related to valuation of properties, including the empanelment of valuers, and review/ renewal of credit facilities. The specific aspects to be addressed in these policies are also detailed in the relevant paragraphs of these Directions.
• Banks are expected to lay down, with the approval of their boards, transparent policies and guidelines for credit dispensation, in respect of each broad category of economic activity, keeping in view the credit exposure norms and various other guidelines issued by the Reserve Bank of India from time to time.
• To ensure that the loan policy of the bank reflects approved internal risk appetite and remains in alignment with the extant regulations, it shall be reviewed by the Board at least once in a financial year.
[Notification no: RBI/DOR/2025-26/280 DOR.CRE.REC.199/07-02-005/2025-26]
