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RBI Master Circular on IRAC Norms for UCBs (2025)

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2025-26/14 · issued 01 Apr 2025 · ~2 min read
Quick answerRBI issued a revised Master Circular for Primary (Urban) Co-operative Banks on income recognition, asset classification, and provisioning, consolidating all instructions up to March 31, 2025. No new guidelines are introduced; it's a clean compilation of existing prudential norms.

What changed

The RBI updated its Master Circular for UCBs on prudential norms, incorporating all instructions issued up to March 31, 2025. This revision supersedes the previous circular dated April 2, 2024, but does not introduce any new guidelines or changes to existing policies.

What it means for you

For UCBs, this circular serves as a single reference document for all IRAC norms, simplifying compliance. Banks must ensure their internal policies align with the consolidated instructions, particularly on NPA classification, income recognition, and provisioning. No immediate operational changes are required, but adherence to the updated circular is mandatory.

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

All Primary (Urban) Co-operative Banks, Risk management and credit departments of UCBs, Compliance officers and internal auditors at UCBs

❓ Common questions

Regulatory timeline

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

Does this circular introduce any new prudential norms for UCBs?

No, this Master Circular only consolidates all existing instructions on income recognition, asset classification, and provisioning issued up to March 31, 2025. It does not contain any new guidelines.

What should UCBs do if their state cooperative laws have stricter norms than this circular?

As per paragraph 1.3 of the circular, if state cooperative acts or rules prescribe more stringent requirements, those should continue to be followed.

Where can we find the list of circulars that have been consolidated in this Master Circular?

The list of consolidated circulars is provided in Annex 9 of the Master Circular, which you should refer to for the complete record.

📜 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 #66: DOR.STR.REC.10/21.04.048/2025-26 — "Master Circular - Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs" dated April 1, 20”
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/14 DOR.STR.REC.10/21.04.048/2025-26 April 01, 2025 The Chief Executive Officers All Primary (Urban) Co-operative Banks Madam / Dear Sir, Master Circular - Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs Please refer to our Master Circular DOR.STR.REC.9/21.04.048/2024-25 dated April 02, 2024 consolidating instructions / guidelines issued to banks till March 31, 2024 on matters relating to prudential norms on income recognition, asset classification and provisioning pertaining to advances. 2. Attached is the revised Master Circular , updated to reflect all instructions issued upto March 31, 2025 on the above matter, as listed in Annex 9 . It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to March 31, 2025 and does not contain any new instructions/guidelines. Yours faithfully (Vaibhav Chaturvedi) Chief General Manager Encl: As above Master Circular Income Recognition, Asset Classification, Provisioning and Other Related Matters Contents
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/14 · issued 01 Apr 2025. 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=12821&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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