Home › Circulars › RBI/2022-23/68

UCB Individual Housing Loan Limits Doubled

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/68 · issued 08 Jun 2022 · ~2 min read

Quick answerRBI has doubled individual housing loan limits for Urban Co-operative Banks: Tier-I UCBs can now lend up to ₹60 lakh per borrower (from ₹30 lakh), and Tier-II UCBs up to ₹140 lakh (from ₹70 lakh), effective June 8, 2022.

What changed

RBI revised the maximum individual housing loan amount for Primary (Urban) Co-operative Banks. For Tier-I UCBs, the limit increased from ₹30 lakh to ₹60 lakh per borrower. For Tier-II UCBs, the limit doubled from ₹70 lakh to ₹140 lakh per borrower. The revision applies from the date of the circular and all other existing instructions remain unchanged.

What it means for you

UCBs can now offer larger housing loans to individual customers, aligning with rising property prices and customer demand. This enhances their competitiveness against commercial banks in the home loan segment. Banks must still adhere to prudential exposure limits and other regulatory norms while sanctioning these higher loan amounts.

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 loan sanction policies and system limits to reflect the new caps of ₹60 lakh for Tier-I and ₹140 lakh for Tier-II UCBs.
Ensure compliance with prudential exposure limits and other extant instructions when sanctioning loans under the revised limits.
Communicate the revised limits to loan officers and credit teams to enable consistent application from the effective date.
Review and adjust risk assessment frameworks to account for higher individual exposures in housing loans.

Who it affects

Primary (Urban) Co-operative Banks (Tier-I and Tier-II), Individual borrowers seeking housing loans from UCBs, Credit and risk management teams at UCBs

❓ Common questions

Regulatory timeline

Stated effective date effective June 8, 2022
Decoded by BankPulse 2026-06-18 06:02 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

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

Do these revised limits apply to Rural Co-operative Banks (RCBs) as well?

No, this circular specifically addresses Urban Co-operative Banks. A separate circular for RCBs was announced in the same policy statement, with limits increasing to ₹50 lakh or ₹75 lakh depending on net worth, but that is not covered in this document.

Are there any additional conditions attached to the higher loan limits?

The circular states that all other extant instructions remain unchanged. Banks must continue to follow prescribed prudential exposure limits and other regulatory norms while sanctioning loans up to the new caps.

From when are these new limits effective?

The instructions came into effect from the date of the circular, i.e., June 8, 2022.

📜 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 #236: DOR.CRE.REC.42/09.22.010/2022-23 — "Individual Housing Loans - Enhancement in Limits" dated June 8, 2022”

📜 Read the original circular — full text as issued by RBI

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 ( 972 kb ) Individual Housing loans – Enhancement in limits RBI/2022-23/68 DOR.CRE.REC.42/09.22.010/2022-23 June 08, 2022 All Primary (Urban) Co-operative Banks, Madam / Dear Sir, Individual Housing loans – Enhancement in limits Please refer to circular UBD.BPD.(PCB). Cir.No.7/09.22.010/2011-12 dated October 31, 2011 on the above subject. 2. As announced in the Statement on Developmental and Regulatory Policies ( para no.1 annexed ), it has been decided to revise the limits on individual housing loans sanctioned by urban co-operative banks to an individual borrower as under: Category of the bank Existing Limit* (per individual borrower) Revised Limit* (per individual borrower) (a) Tier-I UCBs ₹30 lakh ₹60 lakh (b) Tier-II UCBs ₹70 lakh ₹140 lakh *subject to prescribed prudential exposure limits 3. All other extant instructions in the matter shall remain unchanged. The above instructions will come into effect from the date of this circular. Yours faithfully, (Manoranjan Mishra) Chief General Manager Extract from Statement on Developmental and Regulatory Policies June 08, 2022 1. Individual Housing Loans by Cooperative Banks – Enhancement in Limits Extant guidelines prescribe prudential limits on the amount of individual housing loans that can be extended by Primary (Urban) Co-operative Banks (UCBs), and Rural Cooperative Banks (RCBs - State Cooperative Banks and District Central Cooperative Banks) to their customers. These limits were last revised for UCBs in 2011 and for RCBs in 2009. Taking into account the increase in housing prices since the limits were last revised and considering the customer needs, it has been decided to increase the existing limits on individual housing loans by cooperative banks. Accordingly, the limits for Tier I /Tier II UCBs shall stand revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh, respectively. As regards RCBs, the limits shall increase from ₹20 lakh to ₹50 lakh for RCBs with assessed net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for other RCBs. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/68 · issued 08 Jun 2022. 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=12336&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.