With the goal of promoting digital banking for customers in rural areas, the eligibility criteria for regional rural banks offering internet banking with transactional facility to their customers have been revised. The RBI circular has come into effect on November 1, 2022.
The revised eligibility criteria are as under: Full implementation of Core Banking Solutions (CBS) and migration to IPv6; Compliance with minimum prescribed CRAR requirement; Net worth of Rs 500 million or more as on March 31 of the previous FY; Net NPA of not more than 5% as on March 31 of the previous FY; Net profit in the two immediately preceding FYs; No instance of default in maintenance of CRR/SLR during the immediately preceding financial year.
The bank should have a satisfactory track record of regulatory compliance and there should be no instances of the monetary penalty imposed for violation of RBI directives/guidelines during the two preceding financial years. The bank should have a sound internal control system approved by a CISA-qualified independent auditor. RRBs fulfilling the above-mentioned criteria and other prescribed conditions should submit an application to the concerned regional office of RBI through NABARD in the prescribed manner.