RBI eases standard asset provisioning for Salary Earners' (Urban) Co-operative Banks

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 479 kb ) Provisioning Requirement for Standard Assets- UCBs RBI/2007-08/333 UBD.PCB.Cir.No. 47/09.11.600/07-08 May 26, 2008 The Chief Executive Officers of All Salary Earners' (Urban) Co-operative Banks Provisioning Requirement for Standard Assets- UCBs Please refer to our circular UBD.PCB.Cir.No.30/09.11.600/06-07 dated February 19, 2007 enhancing the provisioning requirement for standard assets in respect of personal loans, loans and advances qualifying as capital market exposure and real estate loans (excluding residential housing loans) from one per cent to two per cent for Tier II banks (unit banks and banks having multiple branches within a single district with deposit of Rs 100 crore and above and all other UCBs operating in more than one district). 2. Keeping in view the nature of membership and loan profile of the Salary Earners’ Banks (SEBs) and representations made by the banks and their federations, the matter has been reviewed and it has been decided that Salary Earners' banks in Tier II (as defined vide our circular UBD (PCB). Cir.No.35 /09.20.001/07-08 dated March 7, 2008 ) may provide for standard assets in respect of personal loans at the rate of 0.4 percent instead of the existing level of two percent. Provisioning requirement in respect of loans and advances qualifying as capital market exposure, commercial real estate loans and loans and advances to systemically important NBFCs-ND would however continue to be 2 % for such banks. 3. The revised instructions on provisioning requirement for standard assets for SEBs are summarized as under: Sr. No. Category of Standard Asset Rate of Provisioning Tier I Salary Earners' UCBs Tier II Salary Earners' UCBs (a) Direct advances to agricultural and SME sectors 0.25 % 0.25 % (b) Personal Loans 0.25 % 0.40 % (c) Loans and advances qualifying as capital market exposures, Commercial real estate loans and loans and advances to systemically important NBFCs-ND. 0.25 % 2.00 % (d) All other loans and advances not included in (a),(b) and (c) above 0.25 % 0.40% 4. The revised instructions are applicable with immediate effect. 5. All other instructions issued in this regard remain unchanged. 6. Please acknowledge receipt to the regional office concerned. Yours faithfully, (A.K Khound) Chief General Manager-in-Charge 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-08/333 · issued 26 May 2008. The plain-English explanation above is BankPulse’s own independent summary.

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