Now Reading: RBI Seeks Comments on Rural Bank and NBFC Lending Drafts
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RBI Seeks Comments on Rural Bank and NBFC Lending Drafts
The Reserve Bank of India has released draft directions to revise concentration-risk and credit-facility rules for rural co-operative banks and invited comments by August 28, 2026. The proposals include exposure limits for…
The Story in Brief
The Reserve Bank of India has released draft directions to revise concentration-risk and credit-facility rules for rural co-operative banks and invited comments by August 28, 2026. The proposals include exposure limits for single and group counterparties, unsecured advances and real estate, along with higher housing-loan limits. Rural co-operative banks with deposits above Rs 1,000 crore could decide housing-loan tenors and moratoriums, while other banks would receive higher ceilings for these parameters.
The RBI has also issued draft amendments to credit-facility rules for non-banking financial companies. Feedback on both sets of proposals can be sent through the central bank’s Connect 2 Regulate portal or by email. Times Now News separately reports that the RBI is preparing draft guidelines to resume Urban Co-operative Bank licensing after a gap of more than two decades.
The Indian Opinion
Claims of a sweeping banking reset are premature while these measures remain drafts. The RBI is proposing more room for some rural banks, but it is also retaining prudential limits and seeking public feedback. Nor does a proposed UCB licensing framework amount to a new licence being granted. The useful test is the final text, especially whether higher housing-loan limits come with safeguards against concentration and weak underwriting.
Sources (3): rbi.org.in, rbi.org.in (2), timesnownews.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
