RBI proposes lending, risk reforms to expand RCB housing loans
The Reserve Bank of India (RBI) wants to shake up how rural cooperative banks (RCBs) handle loans and risks, aiming to make them more stable and flexible, especially when it comes to housing loans.
These changes are meant to help rural borrowers get better access to funds that fit their needs.
If you have thoughts on this, you can send in your feedback until August 28.
Larger RCBs could set loan terms
The RBI plans to let RCBs offer bigger housing loans.
Larger banks (with deposits over ₹1,000 crore) could set their own loan terms through board policies, while smaller banks will stick to new regulatory limits.
To keep things safe, stricter rules are proposed for how much these banks can lend to individuals or groups and on unsecured advances, so risks stay under control as credit options expand.