No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/524 · issued 11 May 2011 · ~2 min read
Quick answerRBI now allows Urban Co-operative Banks to use the additional 5% of total assets for housing loans up to Rs 15 lakh, up from Rs 10 lakh. This replaces the earlier November 2010 circular and removes the old exception for funds from higher financing agencies.
What changed
The additional 5% of total assets that UCBs can lend for housing loans now applies to loans up to Rs 15 lakh per individual, instead of the earlier Rs 10 lakh cap. The earlier provisions that allowed exceeding the overall 10% limit using funds from higher financing agencies or NHB refinance have been withdrawn.
What it means for you
UCBs get more room to lend for costlier dwelling units, addressing industry feedback that the Rs 10 lakh cap was too low. The overall 10% exposure limit to housing, real estate, and commercial real estate remains unchanged, but the extra 5% buffer is now more usable. Banks must ensure compliance with all other existing instructions on asset computation and sector exposure.
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
Update internal lending policies to reflect the revised Rs 15 lakh limit for the additional 5% housing loan window.
Ensure the overall exposure to housing, real estate, and commercial real estate does not exceed 10% of total assets, plus the additional 5% for eligible housing loans.
Discontinue reliance on the earlier exemption that allowed exceeding limits via funds from higher financing agencies or NHB refinance.
Train credit staff on the new eligibility criteria and documentation requirements for loans up to Rs 15 lakh.
Who it affects
Primary (Urban) Co-operative Banks, Housing loan borrowers seeking loans up to Rs 15 lakh, Credit and risk management teams at UCBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 01:31 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new housing loan limit under the additional 5% window?
UCBs can now lend up to Rs 15 lakh per individual for purchase or construction of dwelling units, using the additional 5% of total assets. Earlier this limit was Rs 10 lakh.
Does this circular change the overall exposure cap for housing and real estate?
No. The overall exposure to housing, real estate, and commercial real estate remains at 10% of total assets. The additional 5% is only for housing loans to individuals up to Rs 15 lakh.
What happens to the earlier exemption for funds from higher financing agencies?
That exemption has been withdrawn. UCBs can no longer exceed the overall 10% limit using funds from higher financing agencies or NHB refinance. All lending must now stay within the prescribed caps.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1521: UBD.BPD.(PCB).Cir.No.47/13.05.000/2010-11 — "Monetary Policy Statement 2011-12 : Exposure to Housing, Real Estate and Commercial Real Estate - Primary (Urban)”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/524
UBD.BPD.(PCB). Cir. No.47/13.05.000/2010-11
May 11, 2011
The Chief Executive Officer,
All Primary (Urban) Cooperative Banks.
Madam / Dear Sir,
Monetary Policy Statement 2011-12
Exposure to Housing, Real Estate and Commercial Real Estate - Primary (Urban) Co-operative Banks
Please refer to para 2.3.4 of our Master Circular UBD.PCB.MC.No.1/13.05.000/2010-11 dated July 1, 2010 on Exposure Norms and Statutory / Other Restrictions and para 4.7.4 of Master Circular UBD.PCB.MC.No. 2/09.22.010/2010-11 dated July 1, 2010 on Finance for Housing Schemes stating that the limit prescribed for lending by UCBs to Housing, Real Estate and Commercial Real Estate may be exceeded to the extent of funds obtained for the purpose from higher financing agencies and refinance from the National Housing Bank. Please also refer to Circular UBD.BPD. (PCB).Cir.No.23/13.05.000/2010-11 dated November 15, 2010 advising that the exposure of UCBs to Housing, Real Estate and Commercial Real Estate would be limited to 10 percent of their total assets which could be exceeded by an additional 5 percent of total assets for the purpose of grant of housing loans to individuals for purchase or construction of dwelling units costing up to Rs. 10 lakh.
2. As announced in the Monetary Policy Statement 2011-12 ( para 101- extract appended ), UCBs would, henceforth, be permitted to lend upto an additional 5 percent of total assets, referred to in para 1 of Circular dated November 15, 2010, for housing loans to individuals upto Rs.15 lakh.
3. It has also been decided that, the provisions contained in para 2.3.4 and para 4.7.4 of Master Circulars dated July 1, 2010, mentioned above, will not be applicable from the date of this Circular.
4. All other instructions regarding grant of loans by UCBs to Housing, Real Estate and Commercial Real Estate sectors, including on computation of total assets, remain unchanged.
Yours faithfully
(Uma Shankar)
Chief General Manager
Encl: 1
Monetary Policy Statement for the Year 2011-12 - (Para - 101)
Exposure of UCBs to Housing, Real Estate and Commercial Real Estate
101. Pursuant to the announcements made in the Second Quarter Review of November 2010, UCBs were permitted to lend up to 10 per cent of their total assets to housing, real estate and commercial real estate and an additional 5 per cent of total assets for purchase and construction of dwelling units costing up to Rs. 10 lakh. Keeping in view the representations received from UCBs and their associations that they are finding it difficult to use the additional limit of 5 per cent of total assets due to the high cost of dwelling units, it is proposed:
to permit UCBs to utilise the additional 5 per cent of their total assets permitted earlier, for housing loans up to Rs 15 lakh.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/524 · issued 11 May 2011. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=6406&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.