Regulating Co-operative Banking

RBI/2025-26/74 DoR.MCS.REC.47/01.01.028/2025-26 August 14, 2025 All Banks All Non-Banking Financial Companies (including Housing Finance Companies) All All-India Financial Institutions All Credit Information Companies All Payment System Providers/ System Participants All Authorised Persons in Foreign Exchange Compliance with Hon’ble Supreme Court Order dated April 30, 2025 in the matter of Pragya Prasun and Ors. vs Union of India (W.P.(C) 289 of 2024) and Amar Jain vs Union of India & Ors. (W.P.(C) 49 of 2025)

RBI/2025-26/140 DOR.STR.REC.45/13.07.010/2025-26 August 06, 2025 Reserve Bank of India (Non-Fund Based Credit Facilities) Directions, 2025 Index Chapter - I 2 Preliminary 2 A. Introduction 2 B. Applicability 2 C. Definitions 3 Chapter II 4 General Conditions 4 Chapter – III 5 A. Guarantees 5 B. Co-acceptances 6 C. Requirements for Other Specific Guarantees 6 Chapter - IV 7 Partial Credit Enhancement 7 A. Salient features of the PCE facility 8 B. Balance Sheet treatment, capital requirements, exposure and asset classification norms for exposures arising on account of providing PCE 9 C. Additional conditions for providing PCE to bonds of NBFCs and HFCs 11 D. Other Aspects of PCE 11 Chapter - V 12 Exclusions and Other Aspects 12 Chapter VI 13 Disclosures 13 Annex 1 14 Operational Risk Controls for issuance of Electronic Guarantees 14 Annex 2 16 List of Circulars repealed in respect of Scheduled Commercial Banks 16 List of Circulars repealed in respect of Urban Cooperative Banks 20

RBI/2025-26/138 DOR.STR.REC.43/21.04.048/2025-26 July 29, 2025 Reserve Bank of India (Investment in AIF) Directions, 2025 The Reserve Bank had issued the circulars DOR.STR.REC.58/21.04.048/2023-24 dated December 19, 2023 and DOR.STR.REC.85/21.04.048/2023-24 dated March 27, 2024 (“existing circulars”), prescribing the regulatory guidelines in respect of investment by the regulated entities of the Reserve Bank (REs) in Alternative Investment Funds (AIFs). The above guidelines have been reviewed, inter alia, taking into account industry feedback as well as the regulations issued by the Securities and Exchange Board of India (SEBI) relating to specific due diligence of investors and investments of AIFs.

RBI/2025-26/64 DoR.MCS.REC.38/01.01.001/2025-26 July 2, 2025 Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 Availability of easy and affordable financing to Micro and Small Enterprises (MSEs) is of paramount importance.

RBI/2025-26/62 DoR.SOG (DEA Fund) No.37/30.01.002/2025-26 June 25, 2025 Madam / Dear Sir The Depositor Education and Awareness (DEA) Fund Scheme, 2014 – Revised Operational Guidelines

RBI/2025-26/59 DOR.STR.REC.34/21.04.048/2025-26 June 19, 2025 Reserve Bank of India (Project Finance) Directions, 2025

RBI/2025-26/52 DOR.SOG(LEG).REC/ 32/ 09.08.024/2025-26 June 12, 2025 All Commercial Banks (including RRBs) and all Co-operative Banks Madam/ Dear Sir Inoperative Accounts/ Unclaimed Deposits in Banks - Revised Instructions (Amendment) 2025 As per instructions, issued vide circular DOR.SOG(LEG).REC/64/ 09.08.024/2023-24 dated January 1, 2024 (hereinafter called the extant instructions), the credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the “Depositor Education and Awareness” (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India. There is a need to enable Business Correspondents to facilitate updation of KYC.

RBI/2025-26/48 DOR.CRE.REC.27/21.01.003/2025-26 June 9, 2025 All Scheduled Commercial Banks (Excluding Regional Rural Banks) Madam / Dear Sir, Large Exposures Framework – Amendment in the list of exempted exposures Please refer to paragraph 3.1 of the Annex to the circular DBR.No.BP.BC.43/21.01.003/2018-19 dated June 03, 2019 on ‘Large Exposures Framework’ (LEF) in terms of which “deposits maintained with NABARD on account of shortfall in achievement of targets for priority sector lending” are excluded from being considered for exposure limits under LEF.

RBI/2025-26/25 DOR.MCS.REC.17/01.01.003/2025-26 April 21, 2025 All Commercial Banks All Primary (Urban) Co-operative Banks All State Co-operative Banks and District Central Co-operative Banks Madam/ Dear Sir, Opening of and operation in deposit accounts of minors

RBI/2025-26/18 DOR.CRE.REC.No.13/07.10.002/2025-26 April 01, 2025 All Primary (Urban) Co-operative Banks Dear Sir/ Madam, Master Circular - Management of Advances - UCBs

RBI/DOR/2025-26/134 DOR.SOG(SPE).REC. 8/13.03.00/2025-26 April 01, 2025 All banks authorised to operate in India Madam/ Sir, Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2025

RBI/2025-26/19 DoR.CRE.REC.14/07.10.002/2025-26 April 01, 2025 All Primary (Urban) Co-operative Banks Madam / Dear Sir, Master Circular - Exposure Norms and Statutory / Other Restrictions - UCBs

RBI/2025-26/17 DOR.CRE.REC.No.11/07.10.002/2025-26 April 1, 2025 All Primary (Urban) Co-operative Banks Madam/Dear Sir, Master Circular - Housing Finance for UCBs Please refer to the Master Circular DOR.CRE.REC.No.6/07.10.002/2024-25 dated April 2, 2024 on the captioned subject, consolidating the instructions / guidelines issued to UCBs till April 01, 2024. Attached is the revised Master Circular, updated to reflect all instructions issued upto March 31, 20

RBI/2025-26/14 DOR.STR.REC.10/21.04.048/2025-26 April 01, 2025 The Chief Executive Officers All Primary (Urban) Co-operative Banks Madam / Dear Sir, Master Circular- Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs

RBI/2025-26/11 DoR.STR.REC 07/09.27.000/2025-26 April 01, 2025 The Managing Director/ Chief Executive Officers All Primary (Urban) Co-operative Banks Dear Sir/ Madam, Master Circular- Guarantees, Co-acceptances & Letters of Credit - UCBs Please refer to our Master Circular DoR.STR.REC.3/09.27.000/2024-25 dated April 01, 2024 on the captioned subject. Attached is the revised Master Circular, updated to reflect all instructions issued up to March 31, 2025 on the above matter, as listed in the Annex. It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to March 31, 2025 and does not contain any new instructions/guidelines.

RBI/2025-26/09 DOR.CAP.REC.03/09.18.201/2025-26 April 01, 2025 All Primary (Urban) Co-operative Banks Dear Sir / Madam, Master Circular - Prudential Norms on Capital Adequacy - Primary (Urban) Co-operative Banks (UCBs) Please refer to our Master Circular DOR.CAP.REC.5/09.18.201/2024-25 dated April 01, 2024 on the captioned subject. 2. The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject issued up to March 31, 2025 as listed in the Appendix. Yours faithfully (Usha Janakiraman) Chief General Manager-in-Charge Encl: As above

RBI/2025-2026/07 DoR.HGG.GOV.No.1/18.10.010/2025-26 April 1, 2025 The Managing Director/Chief Executive Officer All Primary (Urban) Co-operative Banks Dear Sir/Madam, Master Circular on Board of Directors - UCBs Please refer to our Master Circular DoR.HGG.GOV.No.1/18.10.010/2024-25 dated April 1, 2024 on the captioned subject (available at RBI website www.rbi.org.in). The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject issued till date.

RBI/2024-25/127 DOR.ACC.REC.No.67/21.04.018/2024-25 March 20, 2025 Madam / Sir, Amortisation of additional pension liability- Implementation of Pension Scheme in Regional Rural Banks with effect from November 1, 1993-Prudential Regulatory Treatment

RBI/2024-25/118 DOR.CRE.REC. 62/07.10.002/2024-25 February 24, 2025 All Primary (Urban) Co-operative Banks Madam / Dear Sir, Review and rationalization of prudential norms - UCBs

RBI/DoR/2024-25/125 DoR.FIN.REC.No. 55/20.16.056/2024-25 January 06, 2025 All Commercial Banks including Small Finance Banks, Local Area Banks and Regional Rural Banks and excluding Payment Banks All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ Central Co-operative Banks All India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI and NaBFID) All Non-Banking Financial Companies including Housing Finance Companies All Asset Reconstruction Companies All Credit Information Companies Dear Sir/ Madam, Master Direction – Reserve Bank of India (Credit Information Reporting) Directions, 2025

RBI/2024-25/100 DOR.STR.REC.54/21.04.048/2024-25 December 31, 2024 All Commercial Banks (including Regional Rural Banks and Local Area Banks) All Primary (Urban) Co-operative Banks All State Cooperative Banks & Central Cooperative Banks All Non-Banking Financial Companies (including Housing Finance Companies) All All-India Financial Institutions Madam/Dear Sir, Government Debt Relief Schemes (DRS)

RBI/2024-25/94 DoR.SPE.REC.No.51/13.03.00/2024-2025 December 06, 2024 All Scheduled Commercial Banks (including Regional Rural Banks) All Small Finance Banks All Local Area Banks All Payments Banks All Primary (Urban) Co-operative Banks/ DCCBs /State Cooperative Banks Madam / Sir, Interest Rates on Foreign Currency (Non-resident) Accounts (Banks) [FCNR(B)] Deposits Please refer to paragraph 2 of the Statement on Developmental and Regulatory Policies issued as a part of theBi-monthly Monetary Policy Statement for 2024-25 dated December 06, 2024 read with instructions regarding interest rates on FCNR(B) deposits contained in Section 19 of the Master Direction (MD) on Interest Rate on Deposits dated March 03, 2016 and Section 18 of the Master Direction on Co-operative Banks - Interest Rate on Deposits dated May 12, 2016, as amended from time to time.

RBI/2024-25/80
DOR.STR.REC.45/04.02.001/2024-25

October 9, 2024

All Scheduled Commercial Banks (excluding RRBs),
Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks having
AD category-I license), and
Exim Bank

Dear Sir / Madam,

RBI/2024-25/76 DOR.STR.REC.44/04.02.001/2024-25 September 20, 2024 All Scheduled Commercial Banks (excluding RRBs), Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks having AD category-I license), and Exim Bank Madam/ Sir, Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit Please refer to the instructions issued vide circular No.DOR.STR.REC.41/04.02.001/2024-25 dated August 29, 2024. 2. Government of India (Gol), vide Trade Notice No.16/2024-2025 dated August 31, 2024, read with Trade Notice No.17/2024-2025 dated September 17, 2024, has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit ('Scheme') from September 1, 2024, to September 30, 2024.

RBI/2024-25/71 DOR.STR.REC.41/04.02.001/2024-25 August 29, 2024 All Scheduled Commercial Banks (excluding RRBs), Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks having AD category-I license), and Exim Bank Dear Sir / Madam, Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit Please refer to the instructions issued vide circular No. DOR.STR.REC. 78/04.02.001/2023-24 dated February 22, 2024.

RBI/2024-25/58 DOR.CAP.REC.No.27/09.18.201/2024-25 August 02, 2024 Dear Sir/ Madam, Prudential Treatment of Bad and Doubtful Debt Reserve by Co-operative Banks As you are aware, under the provisions of the respective State Co-operative Societies Acts, or otherwise, on prudential consideration, several co-operative banks have created Bad and Doubtful Debt Reserve (BDDR) . While in some cases, BDDR is created by recognising an expense in the Profit and Loss (P&L) Account, in other cases it is created through appropriations from net profits.

RBI/2024-25/57 DOR.CAP.REC.No.30/09.18.201/2024-25 July 30, 2024 Dear Sir/ Madam, Guidelines on treatment of Dividend Equalisation Fund (DEF)- Primary (Urban) Co-operative Banks (UCBs)

RBI/DoR/2024-25/122 DoR.FIN.REC.No.31/20.16.003/2024-25 July 30, 2024 All Commercial Banks including Small Finance Banks, Local Area Banks and Regional Rural Banks and excluding Payments Banks All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ Central Co-operative Banks All India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI and NaBFID) All Non-Banking Financial Companies including Housing Finance Companies All Asset Reconstruction Companies All Credit Information Companies Dear Sir/ Madam, Master Direction on Treatment of Wilful Defaulters and Large Defaulters This Master Direction on wilful defaulters serves as a comprehensive guideline delineating the regulatory framework and procedures for classification of borrowers as wilful defaulters. This directive plays a crucial role in maintaining the integrity of the financial system by outlining the measures and consequences for those borrowers who deliberately default on their financial obligations.

RBI/2024-25/54 DOR.CRE.REC. 29/07.10.002/2024-25 July 25, 2024 All Primary (Urban) Co-operative Banks Madam / Dear Sir, Bank Finance against Shares and Debentures

RBI/2024-25/53 DOR.CRE.REC. 28/07.10.002/2024-25 July 25, 2024 All Primary (Urban) Co-operative Banks Madam / Dear Sir, Small Value Loans – Primary (Urban) Co-operative Banks (UCBs) Please refer to paras 2.2 and 2.2.1 of the circular DOR (PCB).BPD.Cir No.10/13.05.000/2019-20 dated March 13, 2020, in terms of which, UCBs were required, inter alia, to have at least 50 per cent of their aggregate loans and advances comprising of Small Value Loans, i.e., loans of value not more than ₹25 lakh or 0.2 per cent of their Tier I capital, whichever is higher, subject to a maximum of ₹1 crore, per borrower. The target date for complying with the above requirement was March 31, 2024.

RBI/2024-25/13 DOR.STR.REC.9 /21.04.048/2024-25 April 02, 2024 The Chief Executive Officer All Primary (Urban) Co-operative Banks Madam / Dear Sir, Master Circular - Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs

RBI/2024-25/10 DOR.CRE.REC.No.6/07.10.002/2024-25 April 2, 2024 All Primary (Urban) Co-operative Banks Madam/Dear Sir, Master Circular - Housing Finance for UCBs Please refer to the Master Circular DOR.CRE.REC.No.9/07.10.002/2023-24 dated April 11, 2023 on the captioned subject, consolidating the instructions / guidelines issued to UCBs till April 10, 2023. Attached is the revised Master Circular, updated to reflect all instructions issued upto March 31, 2024 on the above matter, as listed in the Appendix. It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to March 31, 2024 and does not contain any new instructions/guidelines.

RBI/2023-24/15 DOR.CRE.REC.No.9/07.10.002/2023-24 April 11, 2023 All Primary (Urban) Co-operative Banks Madam/Dear Sir, Master Circular - Housing Finance for UCBs Please refer to our Master Circular DOR.CRE.REC.No.49/09.22.010/2022-23 dated June 23, 2022 on the captioned subject (available at RBI website /en/web/rbi). The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject issued till date. Yours faithfully (Manoranjan Mi

RBI/2022-23/146 DOR.CAP.REC.No.86/09.18.201/2022-23 December 1, 2022 Dear Sir/Madam, Revised Regulatory Framework for Urban Co-operative Banks (UCBs) – Net Worth and Capital Adequacy Please refer to the Revised Regulatory Framework for Urban Co-operative Banks (UCBs) emanating from the recommendations of Expert Committee on Urban Co-operative Banks (Press Release: 2022-2023/561 dated July 19, 2022) and circular no. DOR.REG.No.84/07.01.000/2022-23 dated December 1, 202

RBI/2022-23/144 DOR.REG.No.84/07.01.000/2022-23 December 01, 2022 Madam / Sir Revised Regulatory Framework - Categorization of Urban Co-operative Banks (UCBs) for Regulatory Purposes Given the heterogeneity in the cooperative sector, a tiered regulatory framework is required to balance the spirit of mutuality and co-operation more prevalent in banks of smaller sizes and those with limited area of operation vis-à-vis the growth ambitions of the large-sized UCBs to spre

RBI/2022-23/143 DOR.REG.No.85/07.01.000/2022-23 December 01, 2022 Madam / Sir Review of norms for classification of Urban Co-operative Banks (UCBs) as Financially Sound and Well Managed (FSWM) In order to ensure a financially sound and stable co-operative sector, select UCBs are termed as Financially Sound and Well Managed (FSWM) subject to fulfillment of certain parameters. In this context, a reference is made to our circular DCBR.CO.LS (PCB) Cir.No.4/07.01.000/2014-

RBI/2022-2023/117 DOR.SOG (SPE).REC.No 68/13.03.00/2022-23 September 16, 2022 All Scheduled Commercial Banks (including Regional Rural Banks)All Small Finance BanksAll Payment BanksAll Local Area BanksAll Primary (Urban) Co-operative Banks/ DCCBs /State Cooperative Banks Sir / Madam, Master Directions on Interest Rate on Deposits Please refer to the instructions on the Foreign Currency (Non-resident) Accounts (Banks) Scheme contained in Section 19 (h) of the Master Di

RBI/2022-23/111 DOR.CRE.REC.66/21.07.001/2022-23 September 02, 2022 All Commercial Banks, Primary (Urban) Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks; and Non-Banking Financial Companies (including Housing Finance Companies) Madam/ Sir, Guidelines on Digital Lending A reference is invited to para 7 of the RBI Press Release “Recommendations of the Working Group on Digital Lending – Implementation” dated August 10, 2022. Detailed gu

RBI/DOR/2021-22/89 DoR.FIN.REC.95/03.10.038/2021-22 March 14, 2022 (Updated as on October 10, 2024) (Updated as on July 25, 2022) All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks) excluding Payments Banks All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ District Central Co-operative Banks All Non-Banking Financial Companies (including Microfinance Institutions and Housing Finance Companies) Madam/ Dear Sir, Master Direction – Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022 Please refer to paragraph 8 of the Statement on Developmental and Regulatory Policies announced as a part of the Bi-monthly Monetary Policy Statement for 2020-21 dated February 5, 2021, regarding review of the regulatory framework for microfinance.

RBI/DOR/2021-22/85 DOR.STR.REC.53/21.04.177/2021-22 September 24, 2021 (Updated as on December 05, 2022) All Scheduled Commercial Banks (including Small Finance Banks but excluding Regional Rural Banks); All All-India Term Financial Institu