RBI has issued revised directions on investments in non- SLR instruments by State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs) following the regulatory approval granted to NABARD for setting up a Shared Service Entity (SSE). Under the updated framework, StCBs and CCBs are permitted to invest voluntarily in the share capital of the SSE, subject to a cap of five percent of their owned funds, which includes paid-up share capital and reserves. These investments will not be counted under the overall prudential limit on non-SLR investments, nor will they be subject to the restrictions on unlisted non- SLR securities.