The RBI has decided to allow voluntary transition of Urban Cooperative Banks meeting certain prescribed criteria into Small Finance Banks. In a press conference in Mumbai, RBI deputy governor N S Vishwanathan said, the High Powered Committee on Urban Cooperative Banks, chaired by R. Gandhi, the then Deputy Governor of Reserve Bank, had, inter alia, recommended the voluntary conversion of large Multi-State UCBs into Joint Stock Companies and other UCBs which meet certain criteria into Small Finance Banks. The RBI release mentioned that the detailed scheme will be announced separately.

The RBI has also revised the Priority Sector Lending guidelines for housing loans with Affordable Housing definition under Pradhan Mantri Awas Yojana.

In order to give a fillip to the low-cost housing for the Economically Weaker Sections and Lower Income Groups, the RBI has decided to revise the housing loan limits for Priority Sector Lending eligibility from existing 28 lakh rupees to 35 lakh rupees in metropolitan and from existing 20 lakh rupees to 25 lakh rupees in other centres. However, the house cannot cost more than 45 lakh rupees in a metro and 30 lakh rupees in other centres.