The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Resolution of Stressed Assets) Directions, 2025.
The following has been stated:-
• A UCB shall ensure careful assessment of the viability, quick detection of weaknesses in accounts and a time-bound implementation of restructuring packages to achieve the basic objective of preservation of economic value of units through restructuring.
• A UCB may restructure the accounts classified under 'standard', 'sub-standard' and 'doubtful' categories.
• A UCB shall not reschedule/restructure/renegotiate borrower accounts with retrospective effect.
• In normal cases, restructuring cannot take place unless alterations/changes in the original loan agreement are made with the formal consent/application of the borrower.
[Notification no. RBI/DOR/2025-26/287 DOR.STR.REC.206/21.04.048 /2025-26]
