Source: Reserve Bank of India · RBI/2009-10/77 · issued 01 Jul 2009 · ~1 min read
Quick answerRBI consolidated housing finance guidelines for UCBs as of July 1, 2009. Banks can lend to individuals, societies, and housing boards for construction, purchase, or repairs. Loans up to limits set by board policy, with priority sector benefits for weaker sections.
What changed
This master circular updates and consolidates all housing finance instructions for UCBs up to June 30, 2009, replacing the July 1, 2008 version. No new policy changes were introduced; it serves as a single reference document.
What it means for you
UCBs can continue housing lending as per existing norms, with flexibility to set loan amounts and margins based on board-approved policies. Bigger banks with surplus funds are encouraged to expand housing finance, which also counts toward priority sector targets for weaker sections.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review and update your housing loan policy to align with this master circular's consolidated guidelines.
Ensure board approval for loan amount and margin decisions, as per commercial judgement.
Classify housing loans to eligible weaker sections as priority sector advances up to prescribed limits.
Obtain general permission from the Registrar for financing housing societies, if not already done.
Who it affects
Primary (Urban) Co-operative Banks (UCBs), Borrowers: individuals, cooperative/group housing societies, housing boards, Weaker sections: economically weaker sections, low and middle income groups
RBI’s words: “The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject up to June 30, 2010.”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1905: UBD.PCB.MC.No.2/09.22.010/2009-10 — "Master Circular on Finance For Housing Schemes - UCBs" dated July 1, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/77
UBD.PCB. MC. No. 2 /09.22.010/2009-10
July 1, 2009
Chief Executive Officer
All Primary (Urban) Co-operative Banks
Dear Sir/Madam,
Master Circular on Finance For Housing Schemes-UCBs
Please refer to our Master Circular UBD.BPD.(UCB).MC.No.2/09.22.010/2008-09 dated July 1, 2008 on the captioned subject (available at RBI website www.rbi.org.in) . The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject up to June 30, 2009.
2. Please acknowledge receipt to the Regional Office concerned of Reserve Bank.
Yours faithfully,
(A.K Khound)
Chief General Manager-in-Charge
Encl: As above
Master Circular
Finance For Housing Schemes
Contents
1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/77 · issued 01 Jul 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5124&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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