The RBI, by exercising its powers under the Banking Regulation Act, 1949, has amended its July 14, 2016 circular on non-SLR investments by State and Central Co-operative Banks (StCBs/CCBs) to permit them to invest in the share capital of the Shared Service Entity (SSE) set up by NABARD. Such investment is capped at 5% of a bank’s owned funds (paid-up share capital and reserves) but will not be subject to the overall prudential limit on non-SLR investments or restrictions on unlisted non-SLR investments. These Directions, titled RBI (Investments in Non-SLR instruments by StCBs/CCBs) Directions, 2025, are effective immediately.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12899&Mode=0
