The Reserve Bank of India has issued a second amendment to the directions governing the investment portfolio of urban co-operative banks, focusing on the classification, valuation, and operation of investments in non-SLR securities.
Amendments to Urban Co-operative Banks Investment Directions
On September 2, 2026, the Reserve Bank of India published the Second Amendment Directions regarding the classification, valuation, and operation of investment portfolios held by urban co-operative banks. This amendment is pertinent to Chapter VIII of the original directions issued on November 28, 2025.
The current amendment refines the regulatory framework for urban co-operative banks by outlining stringent guidelines for investments made in non-SLR securities. These refinements are aimed at enhancing the stability and soundness of urban co-operative banks by ensuring that their investment activities adhere to regulatory standards.
Legal professionals advising banking clients should be aware of the ramifications this amendment may have on compliance protocols within urban co-operative banks. Clients may require assistance in re-evaluating their investment strategies to align with the newly established requirements.
Citations
- RBI Second Amendment Directions (2026) RBI Notifications