It relates to Primary (Urban) Co- operative Banks (excluding Salary Earners’ Banks) regarding their contributions to eligible funds due to shortfalls in Priority Sector Lending (PSL) targets. The contributions to entities like NABARD, NHB, SIDBI, and MUDRA Ltd will no longer be counted when calculating a UCB’s aggregate exposure to these counterparties. It means that these contributions will not impact the prudential exposure limits, which are set at 15% of Tier-I capital for a single borrower and 25% for a group of connected borrowers.
