<h1>RBI Proposes New Exposure Limits for Urban Co-operative Banks to Mitigate Risks and Boost Financial Inclusion.</h1> The Reserve Bank of India issued a draft circular proposing new limits on exposure for urban co-operative banks (UCBs) to single and group borrowers, setting these at 10% and 25% of Tier I capital, respectively. UCBs must also ensure that at least 50% of their loan portfolio comprises loans of no more than Rs. 25 lakh per borrower. Additionally, the priority sector lending target for UCBs is increased to 75% of adjusted net bank credit or credit equivalent amount of off-balance sheet exposure by March 31, 2023. These measures aim to mitigate credit concentration risks and enhance financial inclusion.