September 30, 2014
All State / Central Cooperative Banks (StCBs/CCBs)
Madam / Dear Sir,
Instruments for Augmentation of Capital Funds - Modification
Please refer to our circular RPCD.RCB.BC.73/07.51.012/2013-14 dated January 7, 2014.
2. It has been decided to modify para 1 of the Annex-I to the said circular as under:
"StCBs/CCBs may issue Long Term (Subordinated) Deposits (LTDs) subject to compliance with their bye-laws / provisions of the Co-operative Societies Act under which they are registered and with the approval of the Reserve Bank of India and the concerned Registrar of Co-operative Societies. LTDs may be issued to members and non-members, including those outside the area of operation of the StCBs/CCBs concerned. There is no prohibition on existing shareholders subscribing to LTD. The amounts raised through LTDs complying with the following terms and conditions will be eligible to be treated as lower Tier II capital".
3. Other provisions of the circular dated January 7, 2014 remain unchanged.
Principal Chief General Manager