Reserve Bank of India (Urban Cooperative Banks – Credit Facilities) Second Amendment Directions, 2026
RBI notification RBI/2026-27/185 · 15 Jul 2026
RBI notification RBI/2026-27/185 · 15 Jul 2026
Summary
Check the official recordThe Reserve Bank of India amends the Urban Cooperative Banks – Credit Facilities Directions, 2025. Banks may finance independent units of a project as separate projects. Each unit must have its own financial closure. Banks must appraise each unit for standalone viability before financing. For electricity generation projects, the amendment clarifies the determination of right of way requirements for transmission infrastructure. These changes apply to Urban Cooperative Banks. The amendments take effect immediately.
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Key dates
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RBI/2026-27/185 DOR.STR.REC.158/21-04-048/2026-27 July 15, 2026
Reserve Bank of India (Urban Cooperative Banks – Credit Facilities) Second Amendment Directions, 2026
Please refer to Reserve Bank of India (Urban Cooperative Banks – Credit Facilities) Directions, 2025 (hereinafter referred to as ‘the Directions’).
In exercise of the powers conferred by the sections 20, 21 and 35A read with the section 56 of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
These Amendment Directions modify the Directions as under:
(i) In paragraph 67, an Explanation shall be added as under:
Explanation: Where it is possible for a project to be operationalised as multiple independent viable units, a bank may at its discretion finance such independent units as separate projects with their own financial closure, provided each unit is appraised ex-ante for standalone viability.
(ii) In paragraph 69, an Explanation shall be added as under:
Explanation: For the purpose of this paragraph, for projects in electricity generation where the project scope involves both generation and transmission (evacuation infrastructure), the right of way requirement for transmission may be determined as per sub-paragraph (3).
(Vaibhav Chaturvedi) Chief General Manager