Home › Circulars › RBI/2021-22/177

UCB Investment in Umbrella Organization: Exemption from Non-SLR Limits

Current · Source: Reserve Bank of India · RBI/2021-22/177 · issued 03 Mar 2022 · ~1 min read
Quick answerRBI exempts Primary Urban Co-operative Banks' investments in the Umbrella Organization (NAFCUB) from the 10% non-SLR deposit cap and 10% unlisted securities sub-limit, effective March 3, 2022.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore, working at a Primary Urban Co-operative Bank, can now invest in the Umbrella Organization without worrying about exceeding the 10% non-SLR deposit cap or the 10% unlisted securities sub-limit. This means the bank can support the Umbrella Organization's efforts to strengthen the sector's collective representation and crisis management framework, without having to adjust their internal investment policies. The officer will need to keep accurate records of these investments to ensure compliance during audits.

What changed

Previously, non-SLR investments by UCBs were capped at 10% of total deposits, and unlisted securities within that could not exceed 10%. Now, capital subscriptions for UO membership are fully exempt from both these limits.

What it means for you

UCBs can now invest in the Umbrella Organization without worrying about breaching their non-SLR or unlisted securities thresholds. This encourages voluntary capital support for NAFCUB, strengthening the sector's collective representation and crisis management framework.

What you must do

Who it affects

All Primary (Urban) Co-operative Banks, National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB)

❓ Common questions

Regulatory timeline

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

Does this exemption apply to all non-SLR investments by UCBs?

No, the exemption is only for capital subscriptions made to acquire membership in the Umbrella Organization (NAFCUB). Other non-SLR investments remain subject to the existing 10% deposit cap and unlisted securities sub-limit.

When did this circular take effect?

The instructions came into effect from the date of the circular, March 3, 2022.

Is the investment in the UO mandatory for UCBs?

No, the circular states that UCBs may subscribe to the capital of the UO on a voluntary basis.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 245 kb ) Investment in Umbrella Organization (UO) by Primary (Urban) Co-operative Banks RBI/2021-22/177 DOR.REC.MRG.90/16.20.000/2021-22 March 3, 2022 Madam / Dear Sir, Investment in Umbrella Organization (UO) by Primary (Urban) Co-operative Banks Please refer to circular UBD.(PCB).BPD.Cir.No.46/16.20.000/2008-09 dated January 30, 2009 on Investments in Non-SLR securities by Primary (Urban) Co-operative Banks. Paragraph 2(i) of the circular states that the non-SLR investments shall be limited to ten per cent of a bank’s total deposits as on March 31 of the previous year. Further, paragraph 2(iii)(b) states that investments in unlisted securities shall not exceed ten per cent of the total non-SLR investments at any time. 2. RBI has accorded regulatory approval to National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) in June 2019 for formation of Umbrella Organization (UO) for the UCB Sector. The approval inter-alia permits UCBs to subscribe to capital of the UO on voluntary basis. 3. It is advised that the investment made for subscribing to the capital of the UO, for acquiring its membership, shall be exempt from the limits prescribed in Paragraphs 2(i) and 2(iii)(b) of the circular ibid. Applicability 4. This circular is applicable to all Primary (Urban) Co-operative Banks. 5. These instructions come into effect from the date of the circular. Yours faithfully (Usha Janakiraman) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/177 · issued 03 Mar 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal investment policies to reflect the exemption for UO capital subscriptions.
📜 Compliance
  • Ensure that only investments specifically for UO membership are treated as exempt, not other non-SLR holdings.
  • Maintain separate records of UO investments to demonstrate compliance during audits.
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 (All Primary (Urban) Co-operative Banks, National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB)), your first concrete step on “UCB Investment in Umbrella Organization: Exemption from Non-SLR Limits” is: “Update internal investment policies to reflect the exemption for UO capital subscriptions.” (RBI issued this 03 Mar 2022).

  1. Circular: RBI/2021-22/177 -- UCB Investment in Umbrella Organization: Exemption from Non-SLR Limits
  2. Issued: 03 Mar 2022
  3. Action required: Update internal investment policies to reflect the exemption for UO capital subscriptions.
  4. Action required: Ensure that only investments specifically for UO membership are treated as exempt, not other non-SLR holdings.
  5. Action required: Maintain separate records of UO investments to demonstrate compliance during audits.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. 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.

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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=12249&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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