Focus Merit

RBI revises exposure limits for urban cooperative banks to single, group borrowers

Reserve Bank Of India (RBI)
  • On March 13, 2020, Reserve Bank of India (RBI) has revised exposure limits for urban cooperative banks (UCBs) of tier-1 capital to a single borrower to 15% and a group of borrowers to 25%.
  • The revised exposure limits shall be applicable to all types of fresh exposures received by UCBs.
  • The RBI had earlier allowed UCBs to have exposures up to 15% and 40% of their capital funds to a single borrower and a group of borrowers, respectively.