RBI (Investments in Non-SLR instruments by State / Central Co-operative Banks) Directions 2025

Reserve Bank of India (RBI) has issued Reserve Bank of India (Investments in Non-SLR instruments by State / Central Co-operative Banks) Directions, 2025.

Reserve Bank has accorded regulatory approval in April 2025 to NABARD’s proposal for setting up of a Shared Service Entity (SSE) for StCBs and CCBs wherein it is envisaged that the StCBs and CCBs can subscribe to the share capital of the SSE on a voluntary basis. In this context, the extant instructions on investment in non-SLR instruments by StCBs/ CCBs issued vide circular dated July 14, 2016 are being suitably amended.

The Directions, inter alia, cover the following with respect to investment in the capital of SSE:

1. Inclusion of the capital of SSE as permissible non-SLR instrument
2. Exemption from prudential limits
3. Specifying an exposure limit

These Directions shall come into effect immediately.

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