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Urban cooperative banks get relief for investing in umbrella organisation

The banking regulator has exempted the UCBs from both the norms.

RBI, Reserve Bank of India
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Manojit Saha Mumbai
1 min read Last Updated : Mar 03 2022 | 11:55 PM IST
The Reserve Bank of India (RBI) has exempted urban cooperative banks (UCBs) from the 10 per cent cap for their investments in the umbrella organisation.

According to norms, investments in non-SLR (statutory liquidity ratio) securities by primary (urban) cooperative banks is to be limited to 10 per cent of a bank’s total deposits as on March 31 of the previous year. Furthermore, the norms mandate that investments in unlisted securities should not exceed ten per cent of the total non-SLR investments at any time.

The banking regulator has exempted the UCBs from both the norms.

In June 2019, the RBI had approved the National Federation of Urban Co-operative Banks and Credit Societies for the formation of umbrella organisation for UCBs. The approval allowed UCBs to subscribe to the capital of the umbrella organisation on a voluntary basis.

Topics :Reserve Bank of IndiaUrban cooperative banksBanking sector