Explanation:

• 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.
• Earlier , Reserve Bank of India has released Supervisory Action Framework tightening norms for Primary (Urban) Co-operative Banks under section 35A of the Banking Regulation Act, 1949.
• Under the Norms ,if the Net Non Performing Assets of the bank exceed 6 % of its net advances,the bank will placed under the Supervisory Action Framework.