The Reserve bank of India (RBI) referred to its Master Circular DCBR.BPD(PCB).MC.No. 4/16.20.000/2015-16 dated 1 July 2015 on the captioned subject. The enclosed Master Circular consolidates and updates all the instructions/guidelines on the subject issued up to 30 June 2015 and can be summarised as under:
MASTER CIRCULAR ON INVESTMENTS BY PRIMARY (URBAN) CO-OPERATIVE BANKS
Para No. Subject
1. Restrictions On Holding Shares in Other Co-operative Societies
2. Statutory (SLR) Investments
3. Investment Policy
4. General Guidelines
5. Transactions through SGL Accounts
6. Use of Bank Receipts (BRs)
7. Engagement of brokers
8. Settlement of Government Securities Transactions through CCIL
9. Trading of Government Securities on Stock Exchanges
10. Ready forward contracts in Government Securities
11. Ready forward contracts in Corporate Debt Securities
12. Guidelines for accounting of Repo/Reverse Repo transaction
13. Non- SLR Investments
14. Internal Control and Investment Accounting
15. Recommendations of Ghosh Committee
16. Categorisation of Investments
17. Valuation of Investments
18. Investment Fluctuation Reserve (IFR)
Annex
I. Certain clarifications regarding brokers’ limits
II. Definitions of certain terms
III. Disclosure requirements for Non-SLR investments
IV. Guidelines for accounting of Repo/Reverse Repo transactions
IV(a). Recommended accounting methodology for Repo/Reverse Repo transactions
IV(b). Illustrative examples for accounting Repo/Reverse Repo transactions
V. Guidelines on Sale of Financial Assets to SC / RC
VI. RBI Notification: UBD.BPD.(PCB).Not.No.2/ 16.26.000/ 2013-14 dated June 5, 2014
Appendix
A. List of circulars consolidated in the Master Circular on Investments by primary urban co-operative banks
B. List of other circulars from which instructions relating to investments have been consolidated in the Master Circular
Comments