Reserve Bank of India vide its Circular dated 30th December, 2022 has referred to circular DOR.REG.No.84/07.01.000/2022-23 dated December 1, 2022, in terms of which UCBs have been categorised into four tiers for regulatory purposes.
With regard to the circular DOR.CRE.REC.42/09.22.010/2022-23 dated June 8, 2022, ceilings on housing loans to individuals are prescribed as ₹60 lakh for Tier-I UCBs and ₹140 lakh for Tier-II UCBs. Subsequent to classification of UCBs into four tiers under the revised regulatory framework, the limits on housing loans sanctioned by UCBs to an individual borrower have been specified as:
- ₹60 lakh for Tier-1 UCBs
- ₹140 lakh for UCBs categorised in Tier-2 to 4.
Further, existing housing loans sanctioned prior to the date of this circular, which may be in breach of the ceiling, will be allowed to run off till maturity and other terms and conditions of the circular ibid, remain unchanged.
This Circular is applicable to all Primary (Urban) Co-operative Banks and shall come into immediate effect.
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