{"id":957,"date":"2025-06-09T17:20:00","date_gmt":"2025-06-09T17:20:00","guid":{"rendered":"https:\/\/jbco.co.in\/non-achievement-of-psl-targets-prudential-treatment-of-contribution-towards-eligible-funds-with-nabard-nhb-sidbi-and-mudra-ltd\/"},"modified":"2025-06-09T17:20:00","modified_gmt":"2025-06-09T17:20:00","slug":"non-achievement-of-psl-targets-prudential-treatment-of-contribution-towards-eligible-funds-with-nabard-nhb-sidbi-and-mudra-ltd","status":"publish","type":"post","link":"https:\/\/jbco.co.in\/?p=957","title":{"rendered":"Non-achievement of PSL targets \u2013 Prudential treatment of contribution towards eligible funds with NABARD, NHB, SIDBI and MUDRA Ltd."},"content":{"rendered":"<table width=\"100%\" border=\"0\" align=\"center\" class=\"td\">\n<tr>\n<td>\n<p>RBI\/2025-26\/49<br \/>  DoR.CRE.REC.28\/07.10.002\/2025-26 <\/p>\n<p align=\"right\">June 9, 2025 <\/p>\n<p>Primary (Urban) Co-operative Banks other than Salary Earners\u2019 Banks<\/p>\n<p>Madam \/ Dear Sir, <\/p>\n<p class=\"head\"> Non-achievement of PSL targets \u2013 Prudential treatment of contribution towards eligible funds with NABARD, NHB, SIDBI and MUDRA Ltd. <\/p>\n<p class=\"head\"> A. Exemption from exposure norms <\/p>\n<p>In terms of para 2.1 of <a href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=11819&amp;Mode=0\" target=\"_blank\" class=\"links\">circular DOR (PCB).BPD.Cir No.10\/13.05.000\/2019-20 dated March 13, 2020<\/a> on \u2018Limits on exposure to single and group borrowers\/parties and large exposures and Revision in the target for priority sector lending \u2013 UCBs\u2019, the prudential exposure limits for UCBs for a single borrower\/party and a group of connected borrowers\/parties are specified as 15 per cent and 25 per cent, respectively, of their tier-I capital.<\/p>\n<p>2. On a review, it has been decided that the contribution<sup data-toggle=\"tooltip\" title=\"In terms of para 29 (i) of the RBI Master Direction FIDD.CO.PSD.BC.13\/04.09.001\/2024-25 dated March 24, 2025 on \u2018Priority Sector Lending (PSL) \u2013 Targets and Classification\u2019, as amended from to time.\"><a href=\"https:\/\/www.rbi.org.in\/scripts\/NotificationUser.aspx?Id=12862&amp;amp;Mode=0#FT1\" class=\"links\">1<\/a><\/sup> by UCBs towards eligible funds with NABARD, NHB, SIDBI, MUDRA Ltd., or any other entity specified by RBI, on account of shortfall in PSL targets shall not be included while computing the aggregate exposure of a UCB to such counterparties for the purpose of deciding the above prudential exposure limits. <\/p>\n<p class=\"head\"> B. Risk weight <\/p>\n<p>3. It is further clarified that contribution by UCBs towards above eligible funds on account of shortfall in PSL targets, shall fall under the category of \u2018all other assets\u2019, attracting a risk weight of 100 per cent<sup data-toggle=\"tooltip\" title=\"\u2018all other assets\u2019 under head \u2018other assets\u2019 as per Annexure-1 of the circular.\"><a href=\"https:\/\/www.rbi.org.in\/scripts\/NotificationUser.aspx?Id=12862&amp;amp;Mode=0#FT2\" class=\"links\">2<\/a><\/sup> for capital adequacy purposes, in terms of Annexure 1 of the RBI circular UBD.No.POT.PCB.Cir.No.45\/09.116.00\/2000-01 dated April 25, 2001 on \u2018Application of Capital Adequacy Norms to Urban (Primary) Co-operative Banks\u2019.<\/p>\n<p class=\"head\"> C. Applicability <\/p>\n<p>4. The above instructions are applicable with immediate effect.<\/p>\n<p>Yours faithfully, <\/p>\n<p>(Vaibhav Chaturvedi) <br \/>        Chief General Manager<\/p>\n<hr>\n<p class=\"footnote\"><a><\/a><sup>1<\/sup> In terms of para 29 (i) of the RBI <a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_ViewMasDirections.aspx?id=12799\" target=\"_blank\" class=\"links\">Master Direction FIDD.CO.PSD.BC.13\/04.09.001\/2024-25 dated March 24, 2025<\/a> on \u2018Priority Sector Lending (PSL) \u2013 Targets and Classification\u2019, as amended from to time. <\/p>\n<p class=\"footnote\"><a><\/a><sup>2<\/sup> \u2018all other assets\u2019 under head \u2018other assets\u2019 as per Annexure-1 of the circular. <\/p>\n<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>RBI\/2025-26\/49 DoR.CRE.REC.28\/07.10.002\/2025-26 June 9, 2025 Primary (Urban) Co-operative Banks other than Salary Earners\u2019 Banks Madam \/ Dear Sir, Non-achievement of PSL targets \u2013 Prudential treatment of contribution towards eligible funds with NABARD, NHB, SIDBI and MUDRA Ltd. A. Exemption from exposure norms In terms of para 2.1 of circular DOR (PCB).BPD.Cir No.10\/13.05.000\/2019-20 dated March 13, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-957","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=957"}],"version-history":[{"count":0,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/957\/revisions"}],"wp:attachment":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}