**Executive Summary**
The Reserve Bank of India (RBI) issued draft Amendment Directions on February 10, 2026, to amend existing directions related to lending norms for Urban Co-operative Banks (UCBs). These amendments propose changes to unsecured advances, loan limits, and housing loan requirements. Stakeholders are invited to submit feedback by March 4, 2026.
**Key Points / Main Content**
* **Draft Amendment Directions Issued:**
* RBI issued draft amendment directions amending existing directions to regulations.
* **Proposed Changes to Lending Norms for UCBs:**
* Rationalisation of the definition of unsecured advances.
* Enhancement of individual loan limits for unsecured advances.
* Revision of the aggregate ceiling for such advances by UCBs to 20% of total advances (from the current 10% of total assets).
* Increase in the lending limit to nominal members for consumer durables to ₹2.5 lakh per borrower.
* Deregulating the tenor and moratorium requirements for housing loans for Tier 3 and Tier 4 UCBs.
* Implementation of certain new disclosure requirements for UCBs.
* **Draft Amendment Directions:**
* Reserve Bank of India (Urban Co-operative Banks – Concentration Risk Management) – Amendment Directions, 2026
* Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) – Amendment Directions, 2026
* Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026
* **Feedback Submission:**
* Comments/feedback can be submitted by March 4, 2026.
* Via the 'Connect 2 Regulate' section on the RBI website.
* Via email with the subject line: 'Feedback on (full name of the draft Amendment Directions)'.
**Impact Analysis**
**Stakeholder: Regulated Entities (UCBs)**
* **Impact:** Need to understand and comply with revised lending norms, including changes to unsecured advances, loan limits, and housing loan requirements. They also need to prepare for new disclosure requirements.
* **Action Required:** Review the draft Amendment Directions, assess the impact on their operations, and provide feedback to the RBI by March 4, 2026.
**Stakeholder: Other Stakeholders/Members of the Public**
* **Impact:** May be affected by changes to lending norms for UCBs, particularly in terms of access to loans and related services.
* **Action Required:** Review the draft Amendment Directions and provide feedback to the RBI by March 4, 2026, if they have any concerns or suggestions.
Key Entities Referenced
Statement on Developmental and Regulatory Policies: A statement that forms the basis for issuing the draft amendment directions regarding lending norms for UCBs.
Reserve Bank of India (Urban Co-operative Banks – Concentration Risk Management) – Amendment Directions, 2026: Draft amendment directions related to concentration risk management in Urban Co-operative Banks.
Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) – Amendment Directions, 2026: Draft amendment directions concerning credit facilities in Urban Co-operative Banks.
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026: Draft amendment directions regarding the presentation and disclosures of financial statements for Urban Co-operative Banks.
Reserve Bank of India: The central bank of India, issuing amendment directions for Urban Co-operative Banks
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 10, 2026
Review of Lending norms for UCBs
In pursuance of the announcement made in the Statement on Developmental and
Regulatory Policies dated February 6, 2026, the Reserve Bank of India has today
issued the following draft Amendment Directions for public comments, which propose
to amend existing Directions issued by the Department of Regulation, RBI:
(i) Reserve Bank of India (Urban Co-operative Banks – Concentration Risk
Management) – Amendment Directions, 2026
(ii) Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) –
Amendment Directions, 2026
(iii) Reserve Bank of India (Urban Co-operative Banks – Financial Statements:
Presentation and Disclosures) – Second Amendment Directions, 2026
2. The above draft Amendment Directions propose to rationalise the definition of
unsecured advances, enhance the individual loan limits for such advances and revise
the aggregate ceiling for such advances by UCBs to 20% of total advances from the
extant ceiling of 10% of total assets. Further, the lending limit to nominal members for
purchase of consumer durables is also proposed to be enhanced to ₹2.5 lakh per
borrower. Additionally, the tenor and moratorium requirements for housing loans are
proposed to be deregulated for Tier 3 and Tier 4 UCBs. Furthermore, certain
disclosure requirements are proposed for the UCBs.
3. The comments / feedback on the draft Amendment Directions may be submitted
by the regulated entities and other stakeholders / members of public on or before
March 4, 2026 through the following channels:
(i) The ‘Connect 2 Regulate’ section on the website by following the
corresponding hyperlink provided against each document in the page where
they are hosted; or
(ii) by email (as indicated in the ‘Connect 2 Regulate’ section) with the subject line
‘Feedback on (full name of the draft Amendment Directions)’.
(Brij Raj)
Press Release: 2025-2026/2082 Chief General Manager