The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation and Operation of Investment Portfolio) Second Amendment Directions, 2026, bearing reference RBI/2026-27/249; DOR.MRG.REC.No.217/00-00-011/2026-27 and dated September 2, 2026.
The amendment modifies the Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025, specifically in relation to investments in non-SLR securities. The 2025 Directions were issued on November 28, 2025.
The stated reason for the amendment is the establishment of the Indian Digital Payment Intelligence Corporation (IDPIC) as the nation’s central digital payment fraud intelligence platform and the need to enable Urban Co-operative Banks (UCBs) to acquire membership of IDPIC.
The amendment is issued by RBI in exercise of powers under Section 35A of the Banking Regulation Act, 1949, read with Section 56 thereof and other enabling laws. The Amendment Directions expressly provide that they come into effect from the date of issue, i.e. September 2, 2026.
The principal substantive change is to paragraph 101(5) of the 2025 Directions. The provision is substituted to permit equity shares of the Umbrella Organization (UO) of the UCB sector and Indian Digital Payment Intelligence Corporation (IDPIC) for acquiring membership.
Paragraph 107(1) is also substituted. The revised provision covers equity shares of Market Infrastructure Companies (MICs), Umbrella Organization (UO) of the UCB Sector, IDPIC, and CCBs/StCBs, where acquisition becomes necessary for obtaining membership of these entities.
Thus, the amendment expressly brings IDPIC within the specified investment framework applicable to UCBs for equity acquisition connected with membership. The amendment does not otherwise state a new monetary ceiling or separate eligibility condition for IDPIC investment in the supplied text.
The amendment is therefore focused on aligning the UCB investment framework with the establishment of IDPIC and enabling UCBs to acquire its equity shares for membership purposes.
Reserve Bank of India
Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026
RBI/2026-27/249
DOR.MRG.REC.No.217/00-00-011/2026-27 | Dated: September 2, 2026
Please refer to Chapter VIII of Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025, on Investment in non-SLR securities. In view of the establishment of Indian Digital Payment Intelligence Corporation (IDPIC) as the nation’s central digital payment fraud intelligence platform and to enable UCBs to acquire its membership, there is a need to amend the extant instructions.
2. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act), read with Section 56 thereof, and all other laws enabling the Reserve Bank in this regard, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
3. (i) These Directions shall be called the Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation and Operation of Investment Portfolio) Second Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from the date of issue.
4. The Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025are amended as provided below.
(i) Paragraph 101.(5) shall be substituted by the following, namely:-
“101.(5) Equity shares of Umbrella Organization (UO) of UCB sector and Indian Digital Payment Intelligence Corporation (IDPIC) for acquiring membership;”.
(ii) Paragraph 107.(1) shall be substituted by the following, namely:-
“107.(1) Equity shares of Market Infrastructure Companies (MICs), Umbrella Organization (UO) of UCB Sector, IDPIC, and CCBs / StCBs, if it becomes necessary to do so for acquiring membership of these entities;”.
(Sunil T S Nair)
Chief General Manager
