UCBs - Branch Licensing Policy Relaxed - ربی - Reserve Bank of India
UCBs - Branch Licensing Policy Relaxed
RBI/2007-2008/79 July 4, 2007 The Chie Executive Officer of All Dear Sir/Madam, Annual Policy Statement for the Year 2007-08 Please refer to para 208 of the Annual Policy Statement 2007-08 (copy enclosed). 2. As announced therein, it has been decided to allow Urban Cooperative Banks (UCBs) to open new branches/Extension Counters (ECs). The eligibility criteria for new branch/EC licences are as under: i) CRAR should not be less than 9% 3. Banks satisfying the above mentioned conditions would be eligible for additional branches/ECs not exceeding 10% of their existing branch network, over a period of two years. 4. Currently, scheduled UCBs not classified in Grade II, III, IV are allowed to open ECs without prior approval of RBI and upgrade them into branches after completion of three years. In view of the policy now put in place, all banks are required to obtain prior authorisation for opening extension counters. 5. Eligible UCBs may apply for licences for branches/extension counters to the Regional Office concerned in the proforma given in Annex II, along with a copy of the relative board note and resolution.
Yours faithfully (N. S. Vishwanathan) Annual Policy Statement for the year 2007-08 a) Licensing of branches of UCBs
Format of the application for additional branch/extension counter licence 1. Name of the bank 2. Address of the Registered Office/Head Office 3. Area of Operation 4. Whether bank has an elected Board of Directors? 5. If so, whether there are two professional directors? 6. No. of existing branches (List of branches to be annexed) and the population of the centre as per latest census 7. No. of existing extension counters (List to be annexed) and the population of the centre as per latest census 8. Net profit for the financial year ended 9. CRAR as on the date of latest Inspection 10. Net NPA as on the date of latest inspection 11. Net worth 12. Whether there were / are any default in CRR/SLR (If yes, give details and the reasons for the same) 13. Proposed centres for opening branch/extension counter and the population of the centre (as per latest census) 14. Business prospects in the proposed place of business within 12 months: a) Deposits |