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.
State / Central Co-operative Banks are also allowed to issue Innovative Perpetual Debt Instruments (Innovative Instruments). The instruments may be issued as bonds or debentures to qualify for inclusion as Tier I Capital for capital adequacy purposes. Banks are required to obtain prior approval of the Reserve Bank of India, on a case-by-case basis, for issue of innovative instruments.