The Reserve Bank of India has extended the glide path for provisioning of Security Receipts for Urban Cooperative Banks from FY 2025–26 to FY 2027–28, Union Minister for Cooperation Amit Shah informed the Rajya Sabha.
In a written reply, Shah said the RBI issued a circular on February 24, 2025, granting an additional two years for provisioning of non-performing assets through Asset Reconstruction Companies.
According to the minister, the extension is aimed at enabling Urban Cooperative Banks to better manage their capital and liquidity positions while dealing with stressed assets.
The extended timeline will allow these banks to make provisions related to Security Receipts over a longer period, thereby helping them minimise potential losses arising from stressed assets.
Shah noted that the measure has been introduced by the central bank to provide additional flexibility to Urban Cooperative Banks in handling non-performing assets transferred to Asset Reconstruction Companies.
