UCBs: Rename Long Term Deposits to Subordinated Deposits
Current · Source: Reserve Bank of India · RBI/2009-10/232 · issued 27 Nov 2009 · ~1 min read
Quick answerRBI directs Primary (Urban) Cooperative Banks to rename 'Long Term Deposits' issued under July 2008 guidelines as 'Long Term (Subordinated) Deposits' effective immediately. No other changes to eligibility or terms.
The rule, in the simplest words
Primary (Urban) Cooperative Banks must rename 'Long Term Deposits' to 'Long Term (Subordinated) Deposits'.
This change is only about renaming, not about the rules or terms of the deposits.
Banks must update their records, systems, and customer documents to reflect the new name.
How it plays out — a real example
A co-operative bank branch officer in Indore, working at a Primary (Urban) Cooperative Bank, receives a circular from RBI and immediately updates the bank's records and customer documents to reflect the new name 'Long Term (Subordinated) Deposits' for the existing and future deposits. The officer ensures that all customer-facing documents, including application forms and deposit receipts, are updated correctly to avoid any confusion.
What changed
RBI has clarified that the product previously referred to as 'Long Term Deposits' in the July 15, 2008 circular must now be called 'Long Term (Subordinated) Deposits'. This is a nomenclature change only; the underlying guidelines remain unchanged.
What it means for you
For UCBs, this is a straightforward rebranding exercise. All existing and future issuances of these deposits must use the new title to ensure regulatory consistency. No impact on capital treatment, maturity, or subordination features. Banks should update their product literature, system labels, and customer communications accordingly.
What you must do
Rename all existing 'Long Term Deposits' issued under the July 2008 circular to 'Long Term (Subordinated) Deposits' in your records and systems.
Update all customer-facing documents, including application forms, sanction letters, and deposit receipts, to reflect the new nomenclature.
Inform your treasury and compliance teams about the change to ensure accurate reporting and regulatory filings.
Review any pending or future issuances to ensure they are titled correctly from the outset.
Who it affects
Primary (Urban) Cooperative Banks, Compliance officers at UCBs, Treasury departments of UCBs
❓ Common questions
Does this change affect the capital treatment of these deposits?
No. The circular only changes the name to 'Long Term (Subordinated) Deposits'. All other terms, including subordination features and capital eligibility, remain as per the July 2008 guidelines.
Do we need to reissue existing deposits with the new name?
No reissuance is required. You should update your internal records and future communications to use the new title. Existing deposit contracts remain valid.
Is this applicable to all cooperative banks or only urban ones?
The circular is addressed to Primary (Urban) Cooperative Banks. Other cooperative bank categories should check if similar instructions apply to them.
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/232
UBD.PCB.Cir.No. 24 /09.18.201/2009-10
November 27, 2009
The Chief Executive Officer
Primary (Urban) Cooperative Banks
Dear Sir / Madam
Augmentation of capital funds by issue of Long Term Deposits
Please refer to our circular UBD.PCB.Cir.No.4/09.18.201/2008-09 dated July 15, 2008 prescribing guidelines for issue of Preference shares and Long term Deposits by Urban Cooperative Banks. In this connection, it is advised that the Long Term Deposits referred to in the said guidelines should henceforth be titled as ‘Long Term (Subordinated) Deposits’.
Yours faithfully
(A.K. Khound)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/232 · issued 27 Nov 2009. The plain-English explanation above is BankPulse’s own independent summary.
Update all customer-facing documents, including application forms, sanction letters, and deposit receipts, to reflect the new nomenclature.
💻 IT / Systems
Rename all existing 'Long Term Deposits' issued under the July 2008 circular to 'Long Term (Subordinated) Deposits' in your records and systems.
📜 Compliance
Inform your treasury and compliance teams about the change to ensure accurate reporting and regulatory filings.
Review any pending or future issuances to ensure they are titled correctly from the outset.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (Primary (Urban) Cooperative Banks, Compliance officers at UCBs, Treasury departments of UCBs), your first concrete step on “UCBs: Rename Long Term Deposits to Subordinated Deposits” is: “Rename all existing 'Long Term Deposits' issued under the July 2008 circular to 'Long Term (Subordinated) Deposits' in your records and systems.” (RBI issued this 27 Nov 2009).
Circular: RBI/2009-10/232 -- UCBs: Rename Long Term Deposits to Subordinated Deposits
Issued: 27 Nov 2009
Action required: Rename all existing 'Long Term Deposits' issued under the July 2008 circular to 'Long Term (Subordinated) Deposits' in your records and systems.
Action required: Update all customer-facing documents, including application forms, sanction letters, and deposit receipts, to reflect the new nomenclature.
Action required: Inform your treasury and compliance teams about the change to ensure accurate reporting and regulatory filings.
Action required: Review any pending or future issuances to ensure they are titled correctly from the outset.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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 03 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=5380&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.