RBI reduces Limits on exposure to group of borrowers for UCB to 25%

The Reserve Bank of India has reduced the prudential exposure limits for Primary (Urban) Co-operative Banks (UCBs) for group of connected borrowers/parties from 40% to 25%.
Primary (Urban) Co-operative Banks (UCBs) were permitted to have exposures up to 15 per cent and 40 per cent of their capital funds to a single borrower and a group of borrowers, respectively.
On a review, RBI has mandated that, henceforth, the prudential exposure limits for UCBs for a single borrower/party and a group of connected borrowers/parties shall be 15 per cent and 25 per cent, respectively, of their tier-I capital.