Urban cooperative banks get relief for investing in umbrella organisation

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