RBI /2008-09/500
UBD.CO.BPD.PCB.Cir.No.69 /16.12.000/2008-09

June 15, 2009

The Chief Executive Officers
All Primary (Urban) Co-operative Banks

Dear Sir,

Appointment of UCBs as agents/ sub-agents under
Money Transfer Service Scheme

Please refer to our circular UBD.CO.BPD(PCB) No.62/16.12.000/2008-09 dated April 23, 2009 on the captioned subject. It has been decided to amend paragraph 2 of the circular as under:

2. In terms of Para 2(iii) of the circular, where the UCBs act as sub-agents, the agent should maintain a security deposit equivalent to 3 days average payout or Rs. 20.00 lakh whichever is higher, in favour of the UCBs concerned. On a review, it has been decided that the amount of security deposits to be maintained by the agents with the UCBs acting as sub-agents may, henceforth, be decided mutually. However, it should be ensured that the payouts by UCBs pending reimbursement by the agents should not, at any point of time, be higher than the security deposits.

3. All other instructions contained in the aforementioned circular remain unchanged.

Yours faithfully,

(Uma Shankar)
Chief General Manager