The National Bank for Agriculture and Rural Development (NABARD) on August 10, 2026, issued the Operational Guidelines for Schematic Lending under Long-Term Refinance to Primary Urban Cooperative Banks (PUCBs).
The following has been stated: -
•NABARD’s operational guidelines provide long-term refinance to Primary Urban Cooperative Banks (PUCBs) for agriculture, allied activities, rural development, MSMEs, rural housing, climate-related projects, and other priority-sector activities.
•Refinance is available through the Pre-Sanction and Automatic Refinance Facility (ARF), with ARF available without an upper ceiling for eligible Farm and Off-Farm Sector projects.
•PUCBs must meet RBI’s financially sound and well-managed criteria, including CRAR above 10%, net NPAs up to 3%, profitability, adequate internal controls, CBS implementation, and compliance with CRR/SLR requirements.
•Eligibility is assessed based on audited financial statements, with different requirements depending on the period of the financial year.
•Changes in financial parameters after March 31 may also be considered based on CA-certified financials, and these eligibility norms apply to both Farm and Off-Farm Sector refinance.
[Circular No. 190/DOR-54/2026]
