What changed
The RBI has issued the Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) Directions, 2025, consolidating instructions on various credit facilities for urban co-operative banks, including digital lending, gold and silver collateral, microfinance, project finance, housing finance, export credit, and other areas.
What it means for you
The updated guidelines will impact urban co-operative banks in terms of their lending practices, risk management, and compliance with regulatory requirements. Banks must ensure that they adhere to the new guidelines to avoid any potential risks or penalties.
What you must do
- Review and update existing lending policies and procedures to align with the new directions
- Ensure that all digital lending arrangements comply with the updated requirements
- Adhere to specific provisions on gold and silver collateral lending, microfinance, project finance, and other credit facilities
Who it affects
Urban co-operative banks
What are the key changes in the updated guidelines?
The updated guidelines consolidate instructions on credit facilities for urban co-operative banks, covering digital lending, gold and silver collateral, microfinance, project finance, housing finance, export credit, and more.
How do I ensure compliance with the new guidelines?
You must review and update existing lending policies and procedures to align with the specific requirements in the directions, including board-approved policies, digital lending rules, and other provisions.
What are the penalties for non-compliance?
The source does not specify penalties; compliance is required to avoid regulatory action.