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Cooperative Banking

RBI permits urban co-op banks to offer doorstep banking

Considering the importance of cooperative banks in promoting inclusive growth, RBI has announced measures to boost the sector.  

Governor Shaktikanta Das, while announcing MPC’s policy decisions on Wednesday, stated that it has 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.

The limits for individual housing loans being extended by Urban Cooperative Banks (UCBs) and Rural Cooperative Banks (RCBs- State Cooperative Banks and District Central Cooperative Banks) which were last fixed in 2011 and 2009 respectively are being revised upwards by over 100% taking into account increase in house prices. This will facilitate a better flow of credit to the housing sector.  

In line with the dispensation available to scheduled commercial banks (SCBs) and UCBs, it is now proposed to permit rural cooperative banks (RCBs- state cooperative banks and district central cooperative banks) to extend finance to commercial real estate – residential housing (loans for residential housing projects), within the existing aggregate housing finance limit of 5% of their total assets. This measure will further augment credit flows from the cooperative banks to the housing sector. 

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