**Summary:**
This Reserve Bank of India (RBI) circular, reference number RBI/2024-25/53 DOR.CRE.REC.2807/10.002/2024-25 dated July 25, 2024, addresses all Primary Urban Cooperative Banks (UCBs) regarding Small Value Loans. The circular modifies the target date for UCBs to meet the requirement of having at least 50% of their aggregate loans and advances comprising of Small Value Loans, as previously outlined in circular DOR.PCB.BPD.Cir No.1013/05.000/2019-20 dated March 13, 2020. Small Value Loans are defined as loans of value not more than ₹25 lakh or 0.2% of a UCB's Tier I capital, whichever is higher, subject to a maximum of ₹1 crore per borrower.
The original target date of March 31, 2024, for achieving the 50% threshold has been extended by two years, establishing a "glide path" with the following revised targets:
* **March 31, 2025:** Minimum 40% of aggregate loans and advances as Small Value Loans.
* **March 31, 2026:** Minimum 50% of aggregate loans and advances as Small Value Loans.
All other provisions and prudential limits prescribed in the March 13, 2020 circular remain unchanged.
For further information, contact Vaibhav Chaturvedi, Chief General Manager, Department of Regulation, Central Office, Central Office Building, 12th/13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. Telephone numbers: 22661602, 22601000. Fax number: 022-2270 5691.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the issuer of this circular.
Primary Urban Cooperative Banks: The entities to which this circular is addressed and regulated by the Reserve Bank of India.
Small Value Loans: A category of loans that is the subject of this circular, with specific criteria defined.
DOR PCB.BPD.Cir No.1013.05.000201920: Reference to a previous circular issued by the Reserve Bank of India on March 13, 2020, related to Small Value Loans for Primary Urban Cooperative Banks.
Tier I capital: A measure of a bank's core equity capital, used in the context of defining limits for Small Value Loans.
Vaibhav Chaturvedi: Chief General Manager, Department of Regulation, Reserve Bank of India.
March 31, 2025: Extended target date for achieving 40% minimum percentage of Small Value Loans in aggregate loans and advances.
March 31, 2026: Extended target date for achieving 50% minimum percentage of Small Value Loans in aggregate loans and advances.
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
RBI/2024-25/53
DOR.CRE.REC.28/07.10.002/2024-25 July 25, 2024
All Primary (Urban) Co-operative Banks
Madam / Dear Sir,
Small Value Loans – Primary (Urban) Co-operative Banks (UCBs)
Please refer to paras 2.2 and 2.2.1 of the circular DOR (PCB).BPD.Cir
No.10/13.05.000/2019-20 dated March 13, 2020, in terms of which, UCBs were
required, inter alia, to have at least 50 per cent of their aggregate loans and advances
comprising of Small Value Loans, i.e., loans of value not more than ₹25 lakh or 0.2
per cent of their Tier I capital, whichever is higher, subject to a maximum of ₹1 crore,
per borrower. The target date for complying with the above requirement was March
31, 2024.
2. Taking into account the representations received by the Bank citing certain
difficulties being faced by the UCBs in this regard, it has been decided to extend the
glide path to achieve the aforementioned target by two years as given below:
Target Date → March 31, 2025 March 31, 2026
Minimum percentage of
Small Value Loans in
40% 50%
aggregate loans and
advances →
3. All other provisions with regard to prudential limits prescribed in the circular dated
March 13, 2020 referred to above remain unchanged.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
__________________________________________________________________
िविनयमन िवभाग, क��ीय कायार्लय, क��ीय कायार्लय भवन, 12व�/ 13व� मंिज़ल, शहीद भगत �संह मागर्, फोटर्, मबुं ई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
�हंदी आसान ह,ै इसका �योग बढ़ाइए