RBI Proposes Doubling Unsecured Asset Limit for Urban Cooperative Banks to 20%

• RBI releases draft amendment lending norms for Urban Cooperative Banks (UCBs).
• Proposal to double the share of unsecured assets to 20% of total assets from 10%.
• Individual loan limits to be enhanced, and definition of unsecured advances rationalized.
• Additional unsecured advances above 20% allowed for priority sector loans, up to Rs 50,000 per borrower.
• Feedback on draft norms can be submitted by March 4, 2026.