Since these banks have limited avenues of mobilizing additional capital resources, permission has been granted for issue of Long Term (Subordinated) Deposits and Innovative Perpetual Debt Instruments. State / Central Co-operative Banks (StCBs / CCBs) are now allowed to issue Long Term (Subordinated) Deposits (LTD) with the prior permission of the respective Registrar (RCS) granted in consultation with the Reserve Bank.
LTD can be issued to members and non-members, including those outside the area of operations of the StCBs / CCBs concerned. There is no prohibition on existing shareholders subscribing to LTD. The amounts raised through LTD will be eligible to be treated as lower Tier II capital, subject to certain conditions. 31.