| Notification Detail :
RBI/2025-26/80
DOR.MRG.REC.49/00.00.011/2025-26
September 26, 2025
All State / Central Co-operative Banks
Madam/ Dear Sir,
Investment by State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs) in Shared Service Entity (SSE) established by NABARD
Please refer to circular DCBR.BPD.BC.No.01/19.51.026/2016-17 dated July 14, 2016 (hereinafter called the extant instructions), on Investments in Non-SLR instruments by State / Central Co-operative Banks. The circular, inter alia, specifies the permissible non-SLR instruments, the prudential limit on a bank’s total non-SLR investments, and restriction on its investment in unlisted non-SLR securities.
2. RBI has accorded regulatory approval in April 2025 to NABARD’s proposal for setting up of a Shared Service Entity (SSE) for StCBs and CCBs wherein it is envisaged that the StCBs and CCBs can subscribe to the share capital of the SSE on a voluntary basis. In this context, there is a need to suitably review the extant instructions on investment in non-SLR instruments by StCBs/ CCBs.
3. Accordingly, the relevant instructions have been reviewed and are being amended vide Reserve Bank of India (Investments in Non-SLR instruments by State / Central Co-operative Banks) Directions, 2025.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager-in-Charge
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