Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) – Amendment Directions, 2026

30-Apr-2026 , 04:46:08 pm | By CASANSAAR print

RBI/2026-27/40
DOR.CRE.REC.30/07-01-005/2026-27

April 29, 2026

Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) – Amendment Directions, 2026

Please refer to Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. On a review and in exercise of the powers conferred by the Sections 21 and 35A read with Section 56 of the Banking Regulation Act, 1949; and all other enabling provisions / laws in this regard, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. The Amendment Directions modifies the Directions as under:

3(1). In ‘Chapter VIII – Housing Finance’ of the Directions, the following modifications shall be effected:-

(i) Section I “Period of Loan” shall be replaced as under:

I. Tenor of and moratorium on Housing Loan

(ii) Paragraph 116 shall be substituted with the following paragraph:

116. (1) For Tier 1 and Tier 2 UCBs, the tenor of housing loans shall not exceed 20 years, including any moratorium period. Moratorium period in housing loans may be permitted upto the date of completion of construction, subject to a maximum of 24 months from the date of first disbursement of the loan.

(2) Tier 3 and Tier 4 UCBs are permitted to determine the tenor of housing loans, including moratorium periods, as per their Board-approved policies.

(3) The credit policy of a UCB should, at a minimum, specify risk management and pricing strategies for housing loans considering inter alia the life expectancy of the borrower and the relatively longer duration of these exposures.

(4) Moratorium may be allowed only in cases of housing loans extended for under construction houses. Consequently, moratorium shall not be allowed in loans for acquisition of completed houses.

(iii) Paragraph 117 shall be deleted

(iv) Section J. “Graduated Instalments” shall be deleted and paragraph 118 shall be a part of Section I.

(v) Paragraph 119 shall be deleted.

3(2). In ‘Chapter X - Loans Against Financial Assets’ of the Directions, the following modifications shall be effected:-

(i) Section C “Advances against Fixed Deposit Receipts (FDRs) Issued by Other Banks” shall be substituted by the following: