The Reserve Bank on Monday harmonised the provisioning norms for standard assets applicable to all categories of urban cooperative banks (UCBs).
In December last year, the RBI had categorised UCBs into four tiers -- tier 1, 2, 3 and 4 -- for regulatory purposes. Prior to that, such banks fell only in tier 1 and tier 2 categories.
"On a review, it has been decided to harmonise the provisioning norms for standard assets applicable to all categories of UCBs, irrespective of their tier in the revised framework," the central bank said in a circular.
Direct advances to agriculture and SME sectors which are standard, would attract a uniform provisioning requirement of 0.25 per cent of the funded outstanding on a portfolio basis to all categories of UCBs under the revised framework.
Advances to commercial real estate (CRE) sector which are standard shall attract a uniform provisioning requirement of 1 per cent of the funded outstanding on a portfolio basis.
In case of Commercial Real ...
