What changed
The revised Master Circular replaces the April 2, 2024 version, incorporating all housing finance instructions issued to UCBs up to March 31, 2025. It does not contain any new directives or changes to existing policies.
What it means for you
UCBs can continue their housing finance operations under the same framework, with no immediate compliance shifts. The circular serves as a single reference document, reducing the need to track multiple updates. Banks should ensure their internal policies align with the consolidated instructions listed in Annex 3.
What you must do
- Review the updated Master Circular and Annex 3 to confirm all existing instructions are covered.
- Update internal policy documents to reference the new circular date (April 1, 2025).
- Train staff on the consolidated guidelines, especially sections on loan limits, margin, and priority sector lending.
- Ensure no new instructions are mistakenly assumed; treat this as a compilation only.
Who it affects
Primary (Urban) Co-operative Banks (UCBs), Housing finance departments of UCBs, Borrowers seeking housing loans from UCBs
Does this circular introduce any new housing finance rules for UCBs?
No, this Master Circular only consolidates existing instructions issued up to March 31, 2025. It does not contain any new guidelines.
Which borrowers are eligible for housing finance under this circular?
Eligible borrowers include individuals, cooperative/group housing societies, housing boards for EWS/LIG/MIG projects, and owners for home extensions or major repairs.
What should UCBs do to comply with this circular?
UCBs should review the consolidated instructions, update internal policies to reference the new circular, and ensure staff are aware of the unchanged guidelines.