RBI extends timeline for co-op bks to meet small value loans aim
This story was originally published at 19:13 IST on 25 July 2024
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MUMBAI – The Reserve Bank of India has decided to extend the timeline for urban co-operative banks to achieve the targets for meeting the minimum percentage of small value loans in aggregate loans and advances by 2 years, it said in a release. As per a circular by RBI in 2020, urban co-operative banks were required to have at least 50% of their aggregate loans and advances comprising small value loans by Mar 31.
Now, urban co-operative banks will have to have a minimum of 40% of small value loans as part of their total advances by Mar 31, 2025, and 50% by Mar 31, 2026.
Small value loans are those which are not more than 25 mln rupees or 0.25% of the urban co-operative banks' Tier I capital, whichever is higher, subject to a maximum of 10 mln rupees per borrower, the RBI said. End
Reported by Kshipra Petkar
Edited by Akul Nishant Akhoury
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