India's central bank on Monday revised certain norms for urban co-operative banks (UCBs), with a view of providing them with greater operational flexibility, while meeting regulatory objectives.

The insurance framework should have a higher coverage threshold, a risk-based premium structure and a mechanism to ensure swift payouts in case of bank failures

The Reserve Bank of India (RBI) has introduced measures to enhance the operational flexibility of Urban Cooperative Banks (UCBs), allowing them greater freedom in lending without compromising regulatory objectives.

RBI has revised some lending norms for urban co-operative banks, including expanding the definition of small-value loans, hiking real estate exposure limits and provisioning requirements for investment in Security Receipts.