Co-operative banks will be eligible for more services at par with commercial banks. Besides, enhancing limits on housing loans, they will be allowed to lend to commercial real estate. Besides, urban cooperative banks will also be allowed to offer door-step banking services to their customers.
“Taking into account the increase in housing prices, it has been decided to increase the existing limits on individual housing loans by cooperative banks” the Reserve Bank said in its statement on regulatory and developmental policies.
Also, considering the growing need for affordable housing and to realise their potential in providing credit facilities to the housing sector, the RBI has to allow State cooperative banks and district cooperative banks to extend finance to commercial real estate – residential housing within the existing aggregate housing finance limit of 5 percent of their total assets.