RBI Clarifies No Relaxation in Non-SLR Investment Limits for Co-op Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/166 · issued 21 Sep 2005 · ~1 min read
Quick answerRBI clarifies that the overall non-SLR investment limit for co-operative banks remains at 10% of total deposits as of March 31 of the previous year, with a sub-ceiling of 5%. No relaxation has been provided despite queries.
What changed
RBI issued a clarification in response to queries about its earlier circular on non-SLR investments. It explicitly stated that there is no relaxation in the overall limit of 10% of total deposits or the sub-ceiling of 5%.
What it means for you
Co-operative banks must continue to adhere strictly to the existing non-SLR investment caps. Any expectation of increased flexibility is unfounded, and banks must ensure compliance to avoid regulatory action.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review your bank's non-SLR investment portfolio to ensure it does not exceed 10% of total deposits as of March 31 of the previous year.
Verify that the sub-ceiling of 5% for any specific category is not breached.
Place this circular before the board for formal acknowledgment and compliance.
Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
State Co-operative Banks (SCBs), District Central Co-operative Banks (DCCBs)
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 19:51 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the non-SLR investment limit for co-operative banks?
The overall limit is 10% of total deposits as on March 31 of the previous year, with a sub-ceiling of 5% as per the earlier circular.
Has RBI relaxed the non-SLR investment limit?
No, RBI has clarified that there is no relaxation in the limit. The existing caps remain unchanged.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2754: RPCD.CO.RF.BC.40/07.02.03/2005-06 — "Investment Portfolio of Banks - Non-SLR Investments" dated September 21, 2005”
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/166
RPCD.CO.RF.BC 40/07.02.03/2005-06
September 21, 2005
All State and District Central Co-operative Banks
Dear Sir,
Investment portfolio of banks- Non-SLR investments
Please refer to our circular No. RPCD.CO.RF.BC.26/07.02.03/2005-06 dated August 4, 2005 on the above subject.
2. On receipt of queries from certain quarters, it is clarified that there is no relaxation in the overall limit of non-SLR investment, which is fixed at 10 per cent of the bank’s total deposits as on March 31 of the previous year with a sub-ceiling of 5 per cent as stated in paragraph 2 of our aforesaid circular.
3. The contents of this circular may be placed before the Board of your bank.
4. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(K.Bhattacharya)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/166 · issued 21 Sep 2005. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2509&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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