According to the Reserve Bank of India’s ‘Primary (Urban) Co-operative Banks’ Outlook 2022-23′, advances by Urban Co-operative Banks (UCBs) to the priority sector saw a notable increase of over 27% in FY23 compared to the previous year. The report indicates UCBs’ advances at Rs 2.2 trillion in FY23, with a significant portion directed towards MSMEs, reaching Rs 1.3 trillion. Micro enterprises received the highest share within MSME lending. The surge is attributed to simplified credit rules and increased demand post-Covid. Despite the RBI’s 60% target for priority sector lending by FY24, UCBs surpassed it, achieving 66.88% in FY23. This growth reflects the revival of MSMEs post-pandemic.
Urban Co-operative Banks’ Priority Sector Advances Surge Over 27% in FY23: RBI Data
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/04/16135843/1573501337-214-ezgif.com-avif-to-jpg-converter.jpg)