On March 03, 2022, the Reserve Bank of India (RBI) has issued notification on Investment in Umbrella Organization (UO) by Primary (Urban) Co-operative Banks.
Applicability: Primary (Urban) Co-operative Banks.
Key points:
- Investment made for subscribing to the capital of the UO, for acquiring its membership, shall be exempt from the limits prescribed which are namely: –
1. Prudential Limit – The Non-SLR investments will continue to be limited to 10% of a bank’s total deposits as on March 31 of the previous year.
2. Restrictions – Investment in unlisted securities should be subject to a prescribed minimum rating and should not exceed 10% of the total Non-SLR investments at any time. Where banks have already exceeded the said limit, no further investment in such securities will be permitted.
