The Reserve Bank of India (RBI) on July 25, 2024, issued the notification regarding the Small Value Loans regarding the Primary (Urban) Co-operative Banks (UCBs).
The following has been stated namely: -
• The glide path to achieve the following targets has been extended by two years: -
1. UCBs were required, inter alia, to have at least 50 percent of their aggregate loans and advances comprising of Small Value Loans, i.e., loans of value not more than ₹25 lakh or 0.2 percent of their Tier I capital, whichever is higher, subject to a maximum of ₹1 crore, per borrower.
• The Target Date with Minimum percentage of Small Value Loans in aggregate loans and advances are namely: -
o March 31, 2025 – 40%
o March 31, 2026 – 50%
[Notification No. RBI/2024-25/53]
