RBI Enables Co-operative Banks to Deploy Internet Banking Services


Bombay: The Reserve Bank of India (RBI) on Thursday authorized all cooperative banks to offer internet banking services to their customers.

In a notification posted on its website, the central bank said that any urban cooperative bank (UCB), state cooperative bank (StCB) and central district cooperative bank (DCCB) that has implemented the basic banking solution in its entirety will be authorized to provide non-transactional information. services to their customers.

Basic banking solution refers to the connection of different branches of a bank to a common computerized system, which allows customers to access their bank account from any branch, regardless of where they are. opened the account. This is generally useful in retail banking.

Non-transactional services include checking the balance, viewing the balance, downloading account statements, requesting the provision of checkbooks, and more, RBI said in its notification.

The start of these services should be reported to the RBI regional office as well as to the National Council for Agriculture and Rural Development (NABARD) in the case of StCBs and DCCBs.

To provide transaction services, the regulator has set strict conditions that these cooperative banks will have to meet.

A cooperative bank that wishes to deploy online transactions must have a minimum equity ratio of 10%, with a net worth of at least ?? 50 crore as of March 31 of the previous fiscal year. It must also have a gross non-performing assets (NPA) ratio of less than 7% and a net NPA ratio of not more than 3%.

The cooperative bank should have made a net profit in the previous fiscal year and, overall, should have made a net profit in at least three of the previous four fiscal years, RBI said. Failures to maintain the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) would not be allowed.

The bank must have a history of regulatory compliance, with no monetary penalties imposed on it for violating RBI guidelines / guidelines in the two fiscal years preceding the year in which the application for Internet-based services is based. transactions are made, said RBI.

“The bank will report to the relevant regional office of the RBI (and also to NABARD in the case of StCB / DCCB) any breach or failure of security systems and procedures and the latter, at its discretion, may decide to order an audit / inspection. special bank, ”indicates the notification.

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