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RBI Raises Housing Loan Limits For Cooperative Banks; Urban Coops Allowed Doorstep Services


The RBI has also proposed to permit rural cooperative banks to extend finance to ‘commercial real estate– residential housing’.

The individual housing loan limits for UBCs and RCBs were last fixed in 2011 and 2009, respectively, and have now been revised due to the rise in house prices

The Reserve Bank of India (RBI) on Wednesday increased the limits for individual housing loans being extended by urban cooperative banks (UCBs) and rural cooperative banks (RCBs), by over 100 per cent. Announcing the decision, RBI Governor Shaktikanta Das said it will facilitate better flow of credit to the housing sector.

The individual housing loan limits for UBCs and RCBs were last fixed in 2011 and 2009, respectively, and have now been revised taking into account the increase in house prices.

The RBI has also proposed to permit RCBs to extend finance to ‘commercial real estate– residential housing’, within the existing aggregate housing finance limit of 5 per cent of their total assets. The move is in line with the dispensation available to scheduled commercial banks (SCBs) and UCBs. This measure will further augment credit flows from the cooperative banks to the housing sector.

The RBI also decided to permit UCBs to extend doorstep banking services to their customers. “It has also been decided to permit UCBs to extend doorstep banking services to their customers. This will enable UCBs to meet the needs of their customers, especially senior citizens and differently abled,” Das said.

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