CURRENT AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -New Limits Tier-I UCBs can now issue individual housing loans of up to Rs 60 lakh, and tier-II UCBs can issue loans of up to Rs 1.4 crore.

Detailed explanation-3: -RBI Guidelines On LTV Ratios For Gold Loans A circular issued by the RBI relaxed the lending norms for gold loans by increasing the LTV from 75% to 90%. The RBI guidelines for gold loans allow lenders, whether banks or NBFCs, to lend up to 90% of the gold jewellery value.

Detailed explanation-4: -(ii) Tier-I UCBs are permitted to extend individual housing loans upto a maximum of ₹60 lakh per individual borrower and Tier II UCBs (UCBs other than Tier I) can extend individual housing loans up to a maximum of ₹140.00 lakh per individual borrower subject to extant prudential exposure limits.

Detailed explanation-5: -As part of the restrictions, the two cooperative banks cannot grant loans, make any investment, incur any liability – including borrowal of funds and acceptance of fresh deposits, disburse or dispose of properties or assets.