Extension Granted for Urban Co-operative Banks to Meet Small Value Loans Requirement.
25 July 2024
In a recent update, the regulatory body has extended the deadline for Urban Co-operative Banks (UCBs) to achieve the required proportion of Small Value Loans in their portfolio. Originally set for March 31, 2024, the target has been revised to March 31, 2025, for UCBs to meet a minimum of 40% in Small Value Loans. By March 31, 2026, this target will increase to 50%.
This adjustment follows feedback from UCBs facing difficulties in complying with the initial deadline. Despite this extension, all other provisions outlined in the March 13, 2020 circular remain unchanged. This move is expected to provide UCBs with the necessary time to align their loan portfolios with regulatory expectations.
