New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The Reserve bank of India has exempted Urban Cooperative

    Banks from which of the following norms? Non-SLR investment 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 investments in unlisted securities shall not exceed ten per cent of the total non-SLR investments at any time investments in listed securities shall not exceed ten per cent of the total non-SLR investments at any time SLR investment 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
    A Only a and c Correct Answer Incorrect Answer
    B Only a and b Correct Answer Incorrect Answer
    C Only a and d Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    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)

    Practice Next

    Relevant for Exams: