The Reserve Bank of India (RBI) has decided to increase the existing limits on individual home loans granted by co-operative banks, taking into account the rise in house prices since the last review of the limits and taking into account the client needs for larger loans.
As a result, limits for Tier 1/Tier 2 Urban Cooperative Banks (UCBs) have been revised from ₹30 lakh/₹70 lakh to ₹60 lakh/₹140 lakh, respectively, the RBI said.
With respect to Rural Cooperative Banks (RCBs), limits have been increased from ₹20 lakh to ₹50 lakh for RCBs with an assessed net worth of less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for the rest.
These limits were last revised for UCBs in 2011 and for RCBs in 2009.
Considering the growing need for affordable housing and to realize their potential in providing credit facilities to the housing sector, the RBI has decided to allow State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) to extend financing to Commercial Real Estate – Residential Housing (CRE-RH) within the existing overall housing finance limit of 5% of their total assets.
The RBI has also allowed UCBs to offer home banking services. “In order to harmonize the regulatory framework between Regulated Entities (REs) and to provide convenient banking services to customers at their doorstep, it has been decided to allow UCBs to extend home banking services to their customers on the same basis than regular commercial services. banks,” the RBI said.