The Reserve Bank of India has decided to issue guidelines to DCCBs (district central co-operative banks) for opening new places of business/installation of ATMs. The criteria for opening of branches/extension counters/specialized branches/regional offices/zonal offices/administrative offices/shifting of branches/upgradation of extension counters into full-fledged branches by a DCCB are as follows:
A licensed DCCB should have completed at least three years of operation; CRAR should not be less than 9%; no default in maintenance of CRR/SLR during the preceding financial year (FY); net NPA should be less than 5%.
The bank should have made a net profit during the two preceding FYs. The bank should have a good track record of regulatory compliance and no monetary penalty should have been imposed on the bank for violation of RBI directives/guidelines during the last two FYs. The bank should not have been placed under any specific direction issued by RBI during the preceding two FYs. The above parameters will be considered as they appear in the latest inspection report of NABARD.
Eligible DCCBs may submit their application in the format prescribed in the Banking Regulation (Co-operative Societies) Rules, 1966, to the concerned regional office (RO) of the RBI for prior approval for the opening of branches/extension counters/specialized branches/regional offices/zonal offices/administrative offices/shifting of branches/upgradation of extension counters into full-fledged branches.
DCCBs shall be allowed to install on-site ATMs without seeking prior approval of the RBI. They may also install off-site/mobile ATMs as per their need and potential in their area of operation without prior permission from the RBI subject to satisfying the prescribed criteria. Further, DCCBs shall ensure that the proposal for installation of off-site/mobile ATMs is duly approved by their board of directors.
