What are the Dos and Don’ts prescribed by RBI for the Co-operative banks dealing in Government securities?
While undertaking transactions in securities, urban co-operative banks should adhere to the instructions issued by the RBI. The guidelines on transactions in government securities by the UCBs have been codifi ed in the master circular UBD.BPD. (PCB). MC.No 12/16.20.000/2009-10 dated July 1, 2009 which is updated from time to time. This circular can also be accessed from the RBI website under the Notifi cations – Master circulars section (http://rbi.org.in/scripts/ BS_CircularIndexDisplay.aspx?Id=3686). The important guidelines to be kept in view by the UCBs relate to formulation of an investment policy duly approved by their Board of Directors, defi ning objectives of the policy, authorities and procedures to put through deals, dealings through brokers, preparing panel of brokers and review thereof at annual intervals, and adherence to the prudential ceilings fi xed for transacting through each of the brokers, etc. The important Do’s & Don’ts are summarized in Box I below. BOX I Do’s &
