The Reserve bank of India has exempted Urban Cooperative

Solution

RBI has accorded regulatory approval to the National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) in June 2019 for the formation of the Umbrella Organization (UO) for the UCB Sector. The approval permits UCBs to subscribe to capital of the UO on a voluntary basis. 1. Non-SLR investments by Primary (Urban) Co-operative Banks shall be limited to ten per cent of a bank’s total deposits as on March 31 of the previous year. 2. 2. Also, the same circular stated that investments in unlisted securities shall not exceed ten per cent of the total non-SLR investments at any time. The investment made for subscribing to the capital of the UO, for acquiring its membership, shall be exempt from the above-mentioned limits (As per the recent guidelines of RBI)