What changed
The circular clarifies that investments by UCBs for acquiring membership in Market Infrastructure Companies (MICs) are considered Non-SLR investments and allows exceeding the existing Non-SLR/unlisted securities limits if needed for such membership.
What it means for you
UCBs can now invest in shares of specified MICs (CCIL, NPCI, SWIFT) for membership, with these investments counted as Non-SLR. They may exceed previous Non-SLR/unlisted securities limits specifically for this purpose.
What you must do
- Treat investments for MIC membership as Non-SLR investments.
- Ensure compliance with the limit for Non-SLR/unlisted securities, noting that exceeding is allowed only for MIC membership.
- Only invest in eligible MICs: Clearing Corporation of India Ltd., National Payments Corporation of India, and SWIFT.
- Monitor RBI updates for changes to the list of eligible MICs.
Who it affects
Primary (Urban) Co-operative Banks, CEOs of Urban Co-operative Banks
What is the date of this RBI circular?
The circular is dated May 7, 2014.
Who is the intended audience?
The Chief Executive Officers of all Primary (Urban) Co-operative Banks.
What is the circular about?
It provides guidelines on investments in Market Infrastructure Companies (MICs) by UCBs.
Which MICs are eligible?
Clearing Corporation of India Ltd., National Payments Corporation of India, and Society for World Wide Inter-Bank Financial Tele-Communication (SWIFT).