2. It has been decided to permit well managed Urban Co-operative Banks, who are members of NDS-OM and have regular concurrent audit of their treasury operations, to undertake intra-day short selling of Government Securities. Accordingly, Urban Co-operative Banks, fulfilling the following conditions are required to seek permission from the Regional Offices concerned to undertake such transactions.
Net Worth of ` 25 crore, CRAR of 9% or more and net NPA of not more than 3%.
Sound risk management practices and mandatory concurrent audit of their Treasury Operations.
3. Urban Co-operative Banks are advised to adhere to the instructions/directions as prescribed by Internal Debt Management Department of Reserve Bank of India for intra-day short selling of Government Securities from time to time.