The Monetary Policy Committee Decisions:
The Monetary Policy Committee of Reserve Bank of India, which met from 6-8 June 2022, took the following decisions.
- Taking into account the increase in housing prices since the limits were last revised and considering the customer needs, it has been decided to increase the existing limits on individual housing loans by cooperative banks.
- Accordingly, the limits for Tier I /Tier II UCBs shall stand revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh, respectively.
- As regards RCBs, the limits shall increase from ₹20 lakh to ₹50 lakh for RCBs with assessed net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for other RCBs.
- Urban cooperative banks can now extend doorstep banking services to customers.
- This will enable these banks to better meet the needs of their customers, especially senior citizens and differently abled persons-
- Rural cooperative banks can now extend finance to commercial real estate (loans to residential housing projects) within existing aggregate housing finance limit of 5% of total assets
- To further augment customer convenience and facilitate recurring payments like subscriptions, insurance premia and education fees of larger value, limit per transaction for e-mandate based recurring payments increased from ₹5,000 to ₹ 15,000