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RBI Updates Master Circular on Advances for Urban Co-op Banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2025-26/18 · issued 01 Apr 2025 · ~2 min read
Quick answerRBI issued a revised Master Circular on Management of Advances for UCBs, consolidating all instructions issued up to March 31, 2025. No new guidelines are introduced; it replaces the July 2023 circular and covers working capital, credit administration, restructuring, and lending activities.

What changed

The RBI released a revised Master Circular on Management of Advances for Primary (Urban) Co-operative Banks, updating the previous version from July 25, 2023. It consolidates all instructions issued up to March 31, 2025, without introducing any new guidelines or changes.

What it means for you

UCBs must ensure their loan policies align with the updated consolidated instructions, including working capital assessment norms and prudential guidelines. The circular reinforces existing requirements like board review of loan policies annually and adherence to turnover-based working capital limits for small borrowers.

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

Primary (Urban) Co-operative Banks, Board of Directors of UCBs, Credit and risk management teams at UCBs, Borrowers seeking working capital or other advances from 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 Master Circular introduce any new lending rules for UCBs?

No, it only consolidates existing instructions issued up to March 31, 2025, without adding new guidelines.

What is the working capital assessment method for micro and small enterprises under this circular?

For MSEs requiring fund-based working capital up to ₹5 crore, assessment can be based on projected annual turnover, with the bank providing at least 20% of turnover as finance.

How often must a UCB's loan policy be reviewed as per this circular?

The loan policy must be reviewed by the board at least once in a financial year to ensure alignment with regulations and risk appetite.

📜 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 #62: DOR.CRE.REC.No.13/07.10.002/2025-26 — "Master Circular - Management of Advances - UCBs" dated April 1, 2025”
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/18 DOR.CRE.REC.No.13/07.10.002/2025-26 April 01, 2025 All Primary (Urban) Co-operative Banks Dear Sir/ Madam, Master Circular - Management of Advances - UCBs Please refer to the Master Circular DOR.CRE.REC.No.27/07.10.002/2023-24 dated July 25, 2023 on the captioned subject, consolidating the instructions / guidelines issued to UCBs till July 24, 2023. Attached is the revised Master Circular , updated to reflect all instructions issued upto March 31, 2025 on the above matter, as listed in the Appendix . 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 on Management of Advances – UCBs Contents
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/18 · issued 01 Apr 2025. The plain-English explanation above is BankPulse’s own independent summary.
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Topics: Co-operative Banks
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12827&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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