What changed
The RBI updated its Master Circular on prudential norms for UCBs, replacing the May 2023 version. It consolidates all instructions issued up to March 31, 2024, without adding new requirements. The circular lists consolidated circulars in Annex 9.
What it means for you
For UCBs, this circular serves as a single reference document for IRAC norms, ensuring uniformity in compliance. It does not alter existing obligations but simplifies tracking of regulatory expectations. Banks must align their internal policies with this consolidated version.
What you must do
- Replace the old May 2023 Master Circular with this updated version for all IRAC-related compliance.
- Review Annex 9 to ensure all referenced circulars are incorporated into your internal policies.
- Train credit and risk teams on the consolidated norms to maintain consistent asset classification and provisioning.
- Update your reporting systems to reflect any minor changes in circular references or annexures.
Who it affects
Primary (Urban) Co-operative Banks, Credit and risk management teams at UCBs, Compliance officers at UCBs
Does this circular introduce any new IRAC norms for UCBs?
No, this is a consolidation of existing instructions issued up to March 31, 2024. No new guidelines are added.
Which previous circular does this replace?
It replaces the Master Circular DOR.STR.REC.14/21.04.048/2023-24 dated May 8, 2023.
Where can I find the list of consolidated circulars?
The list is provided in Annex 9 of the Master Circular.