RBI Update - Reserve Bank of India (Urban Cooperative Banks – Credit Facilities) Second Amendment Directions, 2026

The Reserve Bank of India has issued the Reserve Bank of India (Urban Cooperative Banks – Credit Facilities) Second Amendment Directions, 2026, effective immediately, amending the Urban Cooperative Banks – Credit Facilities Directions, 2025. The amendment inserts an explanation under paragraph 67 clarifying that where a project can be operationalised as multiple independent and viable units, an Urban Cooperative Bank may, at its discretion, finance such units as separate projects with independent financial closure, subject to an ex-ante appraisal of each unit’s standalone viability. Additionally, an explanation has been added to paragraph 69 specifying that, for electricity generation projects involving both generation and transmission (evacuation infrastructure) components, the right of way requirement for the transmission portion may be determined in accordance with sub-paragraph (3).