What changed
RBI has advised that adherence to the National Building Code of India 2005, formulated by the Bureau of Indian Standards, will be advisable for UCBs. Banks' boards may consider this aspect for incorporation in their loan policies.
What it means for you
UCBs may now consider factoring in NBC compliance when sanctioning loans for construction or property development. This could reduce risk of structural failures and disaster losses, aligning lending with national safety standards.
What you must do
- Review current loan policies and consider referencing NBC of India 2005 specifications for building construction projects.
- Train credit officers to consider NBC compliance during loan appraisal for construction or property loans.
- Consider updating board-approved lending guidelines to reference NBC norms for safety against natural disasters.
- Communicate the consideration to borrowers and seek NBC compliance declarations where applicable.
Who it affects
All Primary (Urban) Co-operative Banks, Borrowers seeking construction or property development loans from UCBs, Board of Directors of UCBs responsible for loan policy formulation
What is the National Building Code of India 2005?
It is a comprehensive code by the Bureau of Indian Standards covering administrative regulations, fire safety, structural design, materials, and construction safety to ensure safe building development across India.
Is adherence to NBC mandatory for UCBs?
RBI has advised that adherence to NBC will be advisable, making it a recommended practice rather than a statutory mandate. Boards may consider incorporating it for safety and risk management.
Where can I get more details on NBC?
Further information is available on the Bureau of Indian Standards website at www.bis.org.in.