25 July 2024

Starting January 1, 2025, Primary (Urban) Cooperative Banks (UCBs) will need to ensure that loans secured by shares and debentures do not exceed 20% of their Tier I capital, rather than their owned funds. This change, detailed in the Master Circular on Prudential Norms for Capital Adequacy, will be based on Tier I capital as of March 31 of the previous year. All other existing regulations remain the same.