Mumbai, Feb. 26 -- The Reserve Bank of India (RBI) has announced a rise in the small value loan ceiling for Urban Co-operative Banks (UCBs) to Rs 3 crore per borrower. According to an RBI circular issued on February 24, the revised definition encompasses loans valued not more than Rs 25 lakh or 0.4 percent of the bank's Tier I capital, whichever is higher. However, the maximum limit stands at Rs 3 crore per borrower, the central bank noted. The RBI has stated that all existing conditions, timelines, and intermediate targets will remain unaffected by this change.

The RBI noted that the aggregate exposure of UCBs to the housing, real estate, and commercial real estate sectors is capped at 10 percent of total assets, with an additional allo...