RBI/2013-14/336
UBD.CO.LS.(PCB).Cir.No. 30/07.01.000/2013-14

October 15, 2013

Chief Executive Officers of
all Primary (Urban) Co-operative Banks

Dear Sir/ Madam,

Section 23 of B. R. Act, 1949 (AACS) - Authorization for Specialized Branches – Central Processing Centres (CPCs) / Retail Assets Processing Centres etc.

We have of late been receiving requests from banks for setting up of Specialized Branches like Central Processing Centres (CPCs)/ Retail Assets Processing Centres/ Regional/ Zonal Processing Centres. The matter was examined by us and it is advised that for opening of such Specialized Branches authorization under Section 23 of the B.R. Act, 1949 (AACS) is required.

2. Need based authorizations for such branches would be considered for UCBs with a large network of branches having substantial volume of business to handle and process, which may ultimately result in cost reduction and faster approvals. UCBs desirous of opening such specialized branches may include the proposal in their Annual Business Plan explaining the need and objective for opening such centres.

3. Applications may be submitted to the concerned Regional Office subject to fulfillment of the following eligibility criteria.

1. Only Scheduled FSWM UCBs as defined in our circular ref: UBD.CO.LS.(PCB).Cir.No.24 /07.01.000/2013-14 dated October 1, 2013 meeting the assessed financial parameters will be eligible.

2. UCBs need to be CBS compliant.

4. UCBs authorized to open such branches should also adhere to the following conditions:

1. These branches should be fully computerized.

2. These branches should be opened within the Area of Operation of the UCB as approved by RBI and should be opened on a cluster approach, i.e. certain number of branches should be linked to a specialized branch.

3. The branch should be opened at the place for which authorization has been issued by RBI and conversion from specialized branch to a normal branch and vice-versa should be carried out only with the prior approval of RBI.

5. These branches shall not have any direct interface/ business transactions with customers except for creation of equitable mortgage, execution/ release of loan documents, initiation of recovery and follow-up measures etc.

Yours faithfully,

(A. K. Bera)
Principal Chief General Manager