Invest Ment Master Circular of Cooperative Bank

Master Circular on Investments by Primary (Urban) Co-operative Banks
(Updated up to June 30, 2008)
(The Master Circular is also available at RBI website www.mastercirculars.rbi.org.in and may be down loaded from there)

RESERVE BANK OF INDIA Urban Banks Department, Central Office Mumbai

RBI/2008-09/57 UBD.BPD. (PCB). MC.No /16.20.000/2008-09 July 1, 2008

Chief Executive Officers of All Primary (Urban) Co-operative Banks Dear Sir, Master Circular on Investments by Primary (Urban) Co-operative Banks Please refer to our Master Circular UBD.BPD.(PCB).MC.No.2/16.20.00/2007-08 dated July 2, 2007 on the captioned subject (available at RBI website www.rbi.org.in). The enclosed Master Circular

consolidates and updates all the instructions/guidelines on the subject upto June 30, 2008.

Yours faithfully,

(A.K.Khound) Chief General Manager In-charge

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Master Circular on Investments by Primary (Urban) Co-op. Banks Contents 1 2 3 4 5 6 7. 8. 9 10 11 12. 13 14 15 16 17 18 Annex I II III Certain clarifications regarding brokers’ limits………………………………….…42 Definitions of certain terms used for non-SLR Debt Securities ………………...44 Disclosure requirements for non-SLR investments………………………………45 Restrictions On Holding Shares in Other Co-operative Societies…………...1 Statutory (SLR) Investments…………………………………………………….2 Investment Policy…………………………………………………………………4 General Guidelines………………………………………………………………..4 Transactions through SGL Accounts…………………………………………….9 Use of Bank Receipts (BRs)……………………………………………………..11 Engagement of brokers…………………………………………………………..13 Settlement of Government Securities Transactions through CCIL…………14 Trading of Government Securities on Stock Exchanges……………………..16 Ready forward contracts in Govt. Securities…………………………………..18 Uniform Accounting for Repo/Reverse Repo transaction…………………….21 Non SLR Investments ……………………………………………………………24 Internal Control and Investment Accounting……………………………………30 Recommenations of Ghosh Committee……………………………………..….31