RBI Notifies Revised Limits Under the Four-Tiered Regulatory Framework for Individual Housing Loans

On 30th December 2022, the Reserve Bank of India issued a notification in regard to the Revised Limits under the fourtiered Regulatory Framework for Individual Housing Loans with reference to Circular -DOR.REG.No.84/07.01.000/2022-23 issued on 1st December 2022, through with the UCB have been categorised into four tiers for regulatory purposes.

In accordance with Circular – DOR.CRE.REC.42/09.22.010/ 2022-23 issued on 8th June 2022, the ceilings on housing loans to individuals are prescribed at INR 60 Lakhs for Tier I UCBs and INR 140 Lakhs for Tier II UCBs. Consecutively, upon the classification of UCBs into four tiers under the revised regulatory framework, the RBI has henceforth decided to specify the limits on housing loans sanctioned by the UCBs to an individual borrow at INR 60 Lakhs for Tier I UCBs and INR 140 Lakhs for UCBs categorised in Tier II to IV. Other Terms and Conditions of the Circular ibid are to remain unchanged.