Equity

The new framework suggests that exposure limits should be 20% of Tier-I capital for a single counterparty and 25% for a group. A higher limit of 30% is proposed for a single Primary Agricultural Credit Society (PACS), compliant with state cooperative laws. The RBI plans to eliminate most existing sectoral exposure limits, but will maintain prudential caps. Aggregate exposure to the sector would be capped at 15% of total loans, with real estate exposure limited to 5%, excluding individual housing loans. Unsecured advances would also be capped at 15% of total loans, with specific limits for individual borrowers based on the bank's size.

Rural co-operative banks with deposits over Rs 10,000 crore may provide housing loans up to Rs 3 crore, while smaller banks have reduced limits based on their deposit size.