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RBI tightens housing finance exposure for co-operative banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/379 · issued 20 Jan 2011 · ~1 min read
Quick answerRBI has reduced the housing finance exposure limit for StCBs and CCBs from 10% of loans to 5% of total assets, effective immediately. Banks exceeding this must comply within six months.

What changed

The housing finance exposure limit for State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs) has been reduced from 10% of total loans and advances to 5% of total assets. The total assets are to be calculated based on the audited balance sheet as of March 31 of the preceding financial year. This change is applicable with immediate effect from the date of the circular (January 20, 2011).

What it means for you

Co-operative banks must now cap their housing loan portfolio at a lower threshold, which could restrict lending growth in this segment. Banks with existing exposure above 5% of total assets need to reduce it within six months, potentially requiring adjustments in lending strategies or asset rebalancing.

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

Who it affects

State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs)

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new housing finance exposure limit for StCBs and CCBs?

The limit is now 5% of total assets, down from the earlier 10% of total loans and advances.

How is total assets defined for this limit?

Total assets should be based on the audited balance sheet as of March 31 of the preceding financial year.

What if my bank's current exposure exceeds the new limit?

You must take steps to bring it down within six months from the date of this circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1557: RPCD.CO.RCBD.BC.No.48/03.03.01/2010-11 — "Housing Finance" dated January 20, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/379 RPCD.CO.RCBD.BC.No. 48/03.03.01/2010-11 January 20, 2011 All State and Central Co-operative Banks Dear Sir Housing Finance Please refer to para 2 (ii) of our circular RPCD.CO.RCBD.BC.No.15/03.03.01/ 2009-10 dated August 13, 2009 on the captioned subject. It has been decided that the exposure of State Co-operative Banks (StCBs) & Central Co-operative Banks (CCBs) to housing finance would, henceforth, be limited to 5 percent of their total assets, as against 10 percent of their total loans and advances. The total assets may be reckoned based on the audited balance sheet as on March 31 of the preceding financial year. 2 . The above limits of credit exposure for housing would be applicable with immediate effect. StCBs and CCBs having exposure in excess of the above limits may initiate steps to bring it down to the revised limits within a period of six months from the date of this circular. 3. All the other terms and conditions set out in our circular dated August 13, 2009 referred to above remain unchanged. 4. Please acknowledge receipt to our concerned Regional Office. Yours faithfully (B.P.Vijayendra) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/379 · issued 20 Jan 2011. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6230&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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