RBI Policy
To rationalise norms for unsecured loans by urban co-op banks
This story was originally published at 12:22 IST on 6 February 2026
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--RBI Malhotra: Moot tenor, moratorium related relaxation for tier-3, 4 UCBs
MUMBAI – The Reserve Bank of India has proposed to rationalise regulatory norms applicable for unsecured loans by urban co-operative banks, Governor Sanjay Malhotra said while delivering the outcome of the February meeting of the Monetary Policy Committee on Friday. It has also proposed to rationalise norms for lending to nominal members and the tenor and moratorium requirements for housing loans, Malhotra said.
"The proposed review shall adopt inter alia, a tiered and simplified approach while maintaining prudential discipline, taking into consideration the growth in total loans and advances of the UCBs over the past few years. Draft directions in this regard will be issued shortly for public consultation," the statement said.
The rate-setting panel left the policy repo rate unchanged at 5.25% in a unanimous decision. It also retained the 'neutral' policy stance even as external member Ram Singh was of the view that the stance be changed to accommodative from neutral.
The central bank will also launch 'SAKSHAM (Sahakari Bank Kshamta Nirman)' - a sector-wide capacity-building and certification framework, Malhotra said. The capacity building of the sector would be implemented through a large number of physical training programmes as well as a scalable learning platform, to cover about 140,000 participants across all functions, the RBI said. End
Reported by Kabir Sharma
Edited by Avishek Dutta
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