The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks - Concentration Risk Management) Directions, 2025.
The following has been stated:-
• “Tier-I Capital” as on March 31 of the preceding financial year shall be reckoned for the purpose of fixing the exposure limits. Tier-I capital for the purpose shall be the same as that prescribed in Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Directions, 2025.
• Real Estate Exposure Norms:- The UCB shall frame, with the approval of its Board of Directors, comprehensive prudential norms relating to the ceiling on the total amount of real estate loans, keeping in view the RBI guidelines to ensure that the UCB credit is used for construction activity and not for activity connected with speculation in real estate subject to the instructions in following paragraphs.
[Notification no. RBI/DOR/2025-26/281 DOR.CRE.REC.200/07-03-005/2025-26]
