 "Nod to urban co-op banks for specialised branches")
The Reserve Bank of India (RBI) has allowed financially-sound and well-managed urban cooperative banks (UCBs) to open specialised branches, or central processing and retail assets processing centres.
In a notification, the central bank said UCBs would have to secure approval from the regulator for opening specialised branches. The approval, it added, would be subject to certain norms—these branches should be fully computerised. Also, these UCBs have to be core banking solution-compliant and these branches should be opened within the area of operation of the UCB concerned.
These should be opened on a cluster basis---a certain number of branches would be linked to a specialised branch.
Conversion from a specialised branch to a normal branch and vice-versa should be carried out only with RBI’s prior approval.
These branches should not have any direct interface/business transactions with customers, except for the creation of equitable mortgage, execution/release of loan documents and the initiation of recoveries and follow-up.
RBI would allow UCBs with a large network of branches and substantial business volume to open specialised branches. This would result in cost reduction and faster approvals.
To open such branches, UCBs would have to propose the move in their annual business plan, explaining the need and the objective of such centres.
In a notification, the central bank said UCBs would have to secure approval from the regulator for opening specialised branches. The approval, it added, would be subject to certain norms—these branches should be fully computerised. Also, these UCBs have to be core banking solution-compliant and these branches should be opened within the area of operation of the UCB concerned.
These should be opened on a cluster basis---a certain number of branches would be linked to a specialised branch.
Conversion from a specialised branch to a normal branch and vice-versa should be carried out only with RBI’s prior approval.
These branches should not have any direct interface/business transactions with customers, except for the creation of equitable mortgage, execution/release of loan documents and the initiation of recoveries and follow-up.
RBI would allow UCBs with a large network of branches and substantial business volume to open specialised branches. This would result in cost reduction and faster approvals.
To open such branches, UCBs would have to propose the move in their annual business plan, explaining the need and the objective of such centres.