Regulatory Alerts2026-08-06
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Review of Guidelines on Concentration Risk Management - Rural Co-operative Banks
The Reserve Bank of India has issued draft Directions for public comments to replace the 2025 Concentration Risk Management Directions and to amend the 2025 Credit Facilities Directions. The proposed rules prescribe prudential exposure limits for single or group counterparties and unsecured advances, while enhancing housing loan limits and allowing flexibility for larger Rural Co-operative Banks with deposits above ₹1,000 crore regarding tenor and moratorium requirements. Prescribed prudential sectoral exposure limits are proposed to be withdrawn, except for the real estate sector. Comments on these drafts are accepted until August 28, 2026.
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( 332 kb ) Date : Aug 06, 2026 Review of Guidelines on Concentration Risk Management - Rural Co-operative Banks In pursuance of the announcement made with regard to the captioned subject in the Statement on Developmental and Regulatory Policies dated August 5, 2026 , the Reserve Bank of India has today issued the following draft Directions for public comments:
Draft Reserve Bank of India (Rural Co-operative Banks – Concentration Risk Management) – Directions, 2026 to replace Reserve Bank of India (Rural Co-operative Banks – Concentration Risk Management) –Directions, 2025
Draft Reserve Bank of India (Rural Co-operative Banks – Credit Facilities) – Amendment Directions, 2026 to amend certain provisions of Reserve Bank of India (Rural Co-operative Banks – Credit Facilities) Directions, 2025
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The above draft Directions prescribe, inter alia, prudential exposure limits for single/group counterparty, enhanced housing loan limits, and prudential exposure limits on unsecured advances. Additionally, it is proposed to allow flexibility to larger Rural Co-operative Banks (RCBs) with deposits above ₹1,000 crore in deciding the tenor and moratorium requirements for housing loans, while increasing the ceilings for these parameters in cases of other RCBs. Further, the prescribed prudential sectoral exposure limits, except for real estate sector, are proposed to be withdrawn.
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The comments / feedback on the draft Directions may be submitted by the regulated entities and other stakeholders / members of public on or before August 28, 2026 through the following channels:
The ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted; or
by email with the subject line ‘Feedback on (full name of the draft Directions)’.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/828
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