August 6, 2026

The Reserve Bank of India (RBI) has announced a review of the Guidelines on Concentration Risk Management (CRM) for Rural Co-operative Banks (RCBs) as part of its efforts to strengthen risk-management practices in the co-operative banking sector.

Concentration risk arises when a bank has a significant portion of its exposure concentrated in a particular borrower, group of borrowers, sector or other category. Such concentration can increase a bank’s vulnerability if problems arise in that particular area.

The RBI’s review seeks to strengthen the framework governing concentration risk at Rural Co-operative Banks and ensure that these institutions maintain appropriate controls over their exposures.

The move is relevant to the broader stability of the rural banking system, as co-operative banks play an important role in providing credit and banking services to rural communities.