Rationalization of Branch Authorisation Policy for Urban Co-operative Banks (UCBs)- (Reserve Bank of India) (08 Jun 2023)
MANU/RMIC/0067/2023
Banking
1. A reference is made to the circular on the revised criteria for classifying a UCB as Financially Sound and Well Managed (FSWM) issued by RBI vide circular DOR.REG.No.85/07.01.000/2022-23 dated December 01, 2022 on "Review of norms for classification of Urban Co-operative Banks (UCBs) as Financially Sound and Well Managed (FSWM)".
2. In order to rationalise the process of branch opening and to enable the UCBs to tap growth opportunities in the sector, it has been decided to grant general permission for branch expansion in the approved area of operation to financially strong UCBs. This is as per the Revised Regulatory Framework for Urban Co-operative Banks (UCBs) released by RBI on July 19, 2022 based on the recommendation of the Expert Committee on Primary (Urban) Co-operative Banks. The details of the scheme are provided in Annex-I.
3. In addition to the general permission, the branch expansion under the prior approval route as per the existing framework will also continue, as hitherto, for other eligible UCBs. However, the process has been simplified to reduce the time taken for granting approvals for opening new branches, the details of which are provided in Annex-II.
Commencement
4. The revised instructions shall come into force with immediate effect.
Applicability
5. This circular is applicable to all Primary (Urban) Co-operative Banks (except Salary Earners' Banks).
Tags : RATIONALIZATION BRANCH AUTHORISATION POLICY
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