No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-23/93 · issued 26 Jul 2022 · ~1 min read
Quick answerRBI mandates that Primary Urban Co-operative Banks must have their board-approved loan policy reviewed at least once every financial year, effective immediately, to ensure alignment with risk appetite and regulations.
What changed
RBI observed that many UCBs had loan policies lacking comprehensive coverage and not undergoing periodic review. Now, the board must review the loan policy at least once per financial year, effective immediately from July 26, 2022.
What it means for you
UCBs must formalize a yearly board review cycle for their loan policy, ensuring it stays current with internal risk appetite and regulatory changes. This reduces the risk of outdated or non-compliant lending practices, strengthening credit governance.
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
Schedule a board meeting to review the loan policy within this financial year if not already done.
Update the loan policy to reflect current risk appetite and all extant RBI guidelines.
Document the annual review process and maintain records of board approvals.
Communicate the revised policy to all credit officers and ensure implementation.
Who it affects
Primary Urban Co-operative Banks, Board of Directors of UCBs, Credit departments of UCBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 05:46 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).
When does this annual review requirement take effect?
The instruction is effective immediately from July 26, 2022, so UCBs must comply from the current financial year onward.
What happens if a UCB fails to review its loan policy annually?
Non-compliance may lead to regulatory action, as the policy must reflect approved risk appetite and align with RBI regulations to avoid supervisory concerns.
📜 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)
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/93
DOR.CRE.REC.56/13.05.000/2022-23
July 26, 2022
All Primary (Urban) Co-operative Banks
Madam / Dear Sir,
Board approved Loan Policy – Management of Advances - UCBs
Please refer to para 1 of the Master Circular DOR.CRE.REC.No.17/13.05.000/2022-23 dated April 8, 2022 on Management of Advances – UCBs in terms of which, UCBs are required to lay down, with the approval of their boards, transparent policies and guidelines for credit dispensation, in respect of each broad category of economic activity, keeping in view the credit exposure norms and various other guidelines issued by Reserve Bank from time to time.
2. It has been observed in several UCBs that these policies not only lack comprehensive coverage, but also do not require a periodic review. In order to ensure that the loan policy reflects approved internal risk appetite and remains in alignment with the extant regulations, it is advised that the loan policy of the bank shall be reviewed by the Board at least once in a financial year.
3. The above instructions will come into effect immediately.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/93 · issued 26 Jul 2022. 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=12361&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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