Investment Portfolio of Banks - Transactions in Securities - ربی - Reserve Bank of India
Investment Portfolio of Banks - Transactions in Securities
RBI/2008-09/473 May 7, 2009 All State Co-operative Banks (StCBs) and Dear Sir, Investment Portfolio of Banks – Transactions in Securities Please refer to our circular RPCD No.RF.BC.17/A.4–92/93 dated September 4, 1992 read with circulars RPCD NO. BC.154/07.02.08/94-95 dated May 23, 1995 and RPCD.CO.RF.BC.14/07.02.03/2005-06 dated July 13, 2005 on the captioned subject. 2. As per extant instructions, securities are held in the permanent category for the purpose of SLR compliance or for yield or capital growth purposes and are usually intended to be held till maturity. Banks are not expected to sell securities in the permanent category freely but if they do so, any loss on such transactions has to be written off and any gain should be first taken to Profit and Loss Account and thereafter be appropriated to the Capital Reserve Account. The inter-changing of investments from permanent to current category and vice versa is to be done with the prior authorisation of the Board of Directors. (B P Vijayendra) |