shah: Union home minister Shah hails RBI steps to boost credit flow via co-op banks | India News

NEW DELHI: Union home minister Amit Shah on Thursday welcomed the steps announced by the Reserve Bank of India to increase credit flow through cooperative banks.
A day earlier, the RBI had come out with a host of measures for the cooperative sector to enable them to play a bigger role in providing credit to the real estate sector.
Shah said in a span of less than one year, the government has taken many historic decisions for the cooperative sector, which were needed for a long time.
“On behalf of the ministry of cooperation and crores of people associated with the cooperative sector, I express my gratitude to Prime Minister Narendra Modi for the decisions that have given new impetus to the development of this sector,” he added.
He mentioned the RBI’s three very important policy decisions for the cooperative sector. First, the individual housing loan limit for urban co-operative banks has been doubled. With this decision, the individual housing loan limit for Tier 1 urban cooperative banks (UCBs) has now been increased from Rs 30 lakh to Rs 60 lakh, for Tier 2 UCBs From Rs 70 lakh to Rs 1.40 crore and for rural cooperative banks (RCBs), the limit has been increased from Rs 20 lakh and Rs 30 lakh to Rs 50 lakh and Rs 75 lakh, respectively, he said.
In another decision, RCBs have been allowed to lend to the commercial real estate residential housing sector, which will increase the scope of RCBs and also give impetus to the resolution of providing affordable houses to the people, the minister said.
In the third major decision, UCBs have been allowed to provide doorstep banking facilities to their customers. With this decision, cooperative banks will now get a level playing field in the competitive banking sector, Shah said.

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