RBI Update – Bank Finance against Shares and Debentures

Primary (Urban) Co-operative Banks (UCBs) were advised that the aggregate of their all loans against the security of shares and debentures should be within the overall ceiling of 20 percent of their owned funds.

It has been decided that the aforementioned overall ceiling of 20 per cent shall be linked to Tier I capital of the bank as on 31st March of the previous financial year.

This shall be effective from January 01, 2025.

Link –https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12708&Mode=0