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:

1. Investments made by UCBs for acquiring membership of MICs will be reckoned as Non-SLR investments;
2. 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;
3. 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