Priority Sector Lending target deadline for Urban Cooperative Banks extended

Urban cooperative banks (UCB) are getting more regulatory relaxations. The Reserve Bank of India (RBI) has extended the deadline for meeting their priority sector lending (PSL) norms.

Moreover, those who have already met the targets would be suitably rewarded. They will also be allowed to resolve stressed assets the same as commercial banks are allowed.

“With a view to ease the implementation challenges faced by the UCBs, it has been decided to extend the phase-in time for achievement of the targets by two years, i.e. upto March 31, 2026” Governor Shaktikanta Das said in his monetary policy statement. “Further, suitable incentives shall be provided to UCBs that have met the prescribed targets as on March 31, 2023”.