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RBI Circular on Urban Co-op Banks: May 2014

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/583 · issued 07 May 2014 · ~1 min read

Quick answerRBI circular dated May 7, 2014, to all Primary (Urban) Co-operative Banks (Ref: UBD.BPD.(PCB).Cir.No 58/16.20.000/2013-14) provides guidelines on investments in Market Infrastructure Companies (MICs). Investments for membership in MICs are treated as Non-SLR investments; UCBs may exceed existing Non-SLR/unlisted securities limits for this purpose. Eligible MICs: Clearing Corporation of India Ltd., National Payments Corporation of India, and SWIFT.

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.

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

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

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 09:56 IST
Status change: superseded 06 Jul 2026, 01:16 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

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).

📜 Read the original circular — full text as issued by RBI

RBI/2013-14/583

 UBD.BPD.(PCB).Cir.No 58/16.20.000/2013-14

 May 7, 2014

 The Chief Executive Officer

 All Primary (Urban) Co-operative Banks

 Dear Sir/Madam,

 Investments in Market Infrastructure Companies 

 by Primary (Urban) Cooperative Banks 

 Please refer to our circular UBD.(PCB).BPD.Cir.46/16.20.00/2008-09 dated January 30, 2009 , in terms of which guidelines were issued to Urban Co-operative Banks (UCBs) for investment in Non-SLR securities.

 2. On the basis of representations received from some UCBs regarding investment in shares of Market Infrastructure Companies (MICs), the following decision has been taken:

 Investments made by UCBs for acquiring membership of MICs will be reckoned as Non-SLR investments; 
 UCBs are allowed to exceed the limit for investments in Non-SLR/unlisted securities prescribed in Circular dated January 30, 2009, if it becomes necessary to do so for acquiring membership of MICs; 
 The MICs eligible for such investments by UCBs are Clearing Corporation of India Ltd., National Payments Corporation of India and Society for World Wide Inter-Bank Financial Tele-Communication (SWIFT). The list of eligible MICs will be updated from time to time by the Reserve Bank of India. 

 Yours faithfully,

 (A.K. Bera)

 Principal Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/583 · issued 07 May 2014. The plain-English explanation above is BankPulse’s own independent summary.

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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=8869&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.