The Reserve Bank of India (RBI) on April 29, 2026, issued Final Amendment Directions on Revised Lending norms for UCBs.
The final amendments aim to liberalize and rationalize lending norms for UCBs by revising the definition of unsecured advances, increasing limits on single and total unsecured exposures, and enhancing lending limits to nominal members for consumer durables. Additional flexibility has been provided to larger UCBs (Tier 3 & Tier 4) in housing loans, while also strengthening transparency through improved disclosure requirements. These changes have been incorporated into updated directions on concentration risk management, credit facilities, and financial statement disclosures, ensuring a balance between credit growth, operational flexibility, and risk control for UCBs.
Accordingly, it has issued the following Amendment Directions:
• Reserve Bank of India (Urban Co-operative Banks – Concentration Risk Management) – Amendment Directions, 2026
• Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) – Amendment Directions, 2026
• Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026
[Notification no. - 2026-2027/171]
