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Banking And Finance
Investment terms for UCBs relaxed further
MUMBAI: The Reserve Bank of India (RBI) has permitted Urban Cooperative Banks (UCBs) to undertake eligible transactions for acquisition/sale of non-SLR investment in secondary market with mutual funds, pension/provident funds and insurance companies.
UCBs were hitherto allowed to undertake transactions only with commercial banks and primary dealers, subject to certain conditions. The RBI said the new move was towards harmonization of regulations for Urban and Rural Co-operative Banks.
UCBs are allowed to invest in ‘A’ or equivalent and higher rated commercial papers (CPs) and bonds; and units of debt mutual funds and money market mutual funds.
Written By
CL Jose
Editor at Business Benchmark NewsHave been in the financial media since the early 90s, starting with Financiall Express in Mumbai. Worked in Mumbai editions of Business Standard and Observer of Business and Politics. I spent most of my journalistic career in the GCC - Saudi Arabia, Oman and UAE with various business newspapers, mostly covering banking and finance.
