The proposals seek to rationalise the definition of unsecured advances, raise individual unsecured loan limits (Rs 5 lakh for Tier 1, Rs 7.5 lakh for Tier 2, and Rs 10 lakh for Tier 3 & 4), and increase the aggregate ceiling on unsecured advances to 20% of total loans and advances from the existing 10% of total assets, with limited relaxation for priority sector loans up to Rs 50,000 per borrower. Lending to nominal members for consumer durables is proposed to be enhanced to Rs 2.5 lakh per borrower. Housing loan tenor and moratorium norms are deregulated for Tier 3 and Tier 4 UCBs, while capped for Tier 1 and Tier 2. The comments/ feedback from stakeholders is invited.
(Link: Draft Amendment Directions, Press Release Dated 10/02/2026)