What is the sectoral exposure limit for UCBs with respect to real estate, including commercial real estate, as a percentage of total assets?

Read the following passage and answer the next 4 questions (Q11-Q14) Urban Co-operative Banks (UCBs), vital players in the urban and semi-urban financial ecosystem, must adhere to strict exposure norms recently outlined in the Master Circular on Exposure Norms and Statutory / Other Restrictions – UCBs issued by the Reserve Bank of India (RBI). The circular highlights the importance of risk management to mitigate over-concentration of credit risk and secure the financial health of UCBs. According to the circular, UCBs are required to limit their exposure to individual and group borrowers based on their Tier-I capital. Additionally, specific sectoral limits, such as exposure to the real estate and commercial real estate sectors, are enforced to prevent excessive risk-taking. The circular also emphasizes statutory and regulatory restrictions related to unsecured advances and lending practices, thereby aligning UCBs' operations with robust risk management principles. UCBs are expected to comply with these guidelines to ensure stability and prevent the adverse impact of concentrated exposures on their financial position. Failure to adhere to these limits can result in regulatory action and penalties, underlining the importance of these measures.