Financial Inclusion and Development

RBI/2007-2008/191RPCD. CO. RRB. No. BC 38 /03.05.33/2007-08November 22, 2007ChairmenAll Regional Rural BanksDear Sir,Legal Guardianship Certificate issued under the National Trust Act, 1999 empowering the disabled persons with autism, cerebral palsy, mental retardation and multiple disabilities We have been advised by the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities (the Trust) that a question has

RBI/2007-2008/190 RPCD.CO.RF.BC.No.37/07.40.06/2007-08 November 20, 2007 The Chief Executive Officers, All State / Central Co-operative Banks (StCBs/DCCBs) Dear Sir/Madam, Legal Guardianship Certificate issued under the National Trust Act, 1999 empowering the disabled persons with autism, cerebral palsy, mental retardation and multiple disabilities We have been advised by the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and

RBI/2007-2008/185 RPCD.CO.RF.BC.No.36/07.38.01/2007-08 November 14, 2007 The Chief Executive Officers, All State / Central Co-operative Banks (StCBs/DCCBs) Dear Sir/Madam, Deposit schemes with lock-in-period It has been brought to our notice that some banks are offering special term deposit products to customers, in addition to regular term deposits, ranging from 300 days to five years, with the following features: i. Lock-in periods ranging from 6 to 12 months; ii. D

RBI/2007-2008/175RPCD.CO.RRB. No. BC. 35 / 03.05.28(B)/2007-08October 31, 2007All Regional Rural BanksDear Sir,Section 42 (1) of Reserve Bank of India Act, 1934 –Maintenance of Cash Reserve Ratio (CRR)-Regional Rural Banks(RRBs)Please refer to our circular RPCD.CO.RRB.BC.17/03.05.28(B) /2007-2008 (RBI/2007-08/109) dated August 1, 2007 on the captioned subject. On a review of the current liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) of a

RBI/2007-2008/174RPCD.CO.RF.BC.No.34/07.02.01/2007-08October 30, 2007All Scheduled State Co-operative Banks Dear Sir,Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR)Please refer to our Circular RBI/2007-2008/108 RPCD.CO.RF.BC.No.15/ 07.02.01/2007-08 dated August 1, 2007 on the captioned subject. On a review of the current liquidity situation, it has been decided to increase cash reserve ratio (CRR) of Scheduled State Co-operativ

RBI/2007-2008/157RPCD.CO. RRB. No. BC. 29 /03.05.33(C) / 2007-08October 09, 2007All Regional Rural Banks Dear SirAuthorisation to open / maintain NRO / NRE accounts in Rupees and accept FCNR deposits by RRBsPlease refer to our circular RPCD.CO.RRB.No.BC 106/ 03.05.33(C)/2006-07 dated June 28, 2007 prescribing the eligibility criteria for RRBs to open/ maintain customers' NRO/NRE accounts in rupees and accept FCNR deposits. The matter of permitting RRBs which are curre

RBI/2007-2008/156 RPCD.CO.RRB.No.BC.28/03.05.90-A/2007-08 October 9, 2007 All Regional Rural Banks Dear Sir, Opening of Controlling Offices by amalgamated RRBs Please refer to paragraph 2.4 of our Master Circular RPCD.CO.RRB. No. BL. BC.09 / 03.05.90-A / 2007-08 dated July 2, 2007. On a review, it has been decided that in partial modification of the instructions contained therein, the Empowered Committee may, taking into account the local conditions and the financials

RBI/2007-2008/136 RPCD.CO. RRB. No. BC.24 /03.05.90-A /2007-08 September 13, 2007 All Regional Rural Banks Dear Sir, Conversion of Satellite Offices into full-fledged branch - RRBs Please refer to paragraph 4 of our circular RPCD.CO.RRB.No BL.BC.09 /03.05.90-A/2007-08 dated July 2, 2007 permitting RRBs to convert their existing loss making branches into satellite offices. With a view to providing better customer service in rural areas, it has been decided to allow RRB

RBI/2007-2008/131RPCD.CO. RRB. No. BC.22 /03.05.90-A /2007-08September 4, 2007All Regional Rural Banks Dear Sir,Opening of Extension Counters by RRBsPlease refer to paragraph 5 of our circular RPCD.CO.RRB. No. BL. BC.09 /03.05.90-A/2007-08 dated July 2, 2007 on the captioned subject. With a view to providing further liberalisation in the matter, it has been decided to allow RRBs to set up Extension Counters at places of worship and market places. The condition of bein

RBI/2007-08/109 RPCD.CO.RRB.BC.17/ 03.05.28(B)/2007-08 August 1, 2007 To All Regional Rural Banks Dear Sir, Section 42 (1) of Reserve Bank of India Act, 1934 – Maintenance of Cash Reserve Ratio (CRR)- Regional Rural Banks (RRBs) Please refer to our circular RPCD.CO.BC.72/03.05.28(B) /2006-2007 (RBI/2006-07/341) dated April 24, 2007 on the captioned subject. On a review of the current liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) of all

RBI/2007-2008/108RPCD.CO.RF.BC.No.15/07.02.01/2007-08August 1, 2007ToAll Scheduled State Co-operative Banks Dear Sir,Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR)Please refer to our Circular RBI/2006-2007/339 RPCD.CO.RF.BC.No.75/ 07.02.01/2006-07 dated April@@NBSP@@24, 2007 on the captioned subject. On a review of the current liquidity situation, it has been decided to increase cash reserve ratio (CRR) of Scheduled State Co-o

RBI/2007-2008/63 RPCD.CO.RRB. No. BL.BC.09 /03.05.90 -A/ 2007-08 July 2, 2007 The Chairmen of all Regional Rural Banks/Sponsor Banks Dear Sir, Section 23 of the Banking Regulation Act, 1949 - Master Circular on Branch Licensing - Regional Rural Banks (RRBs) Reserve Bank of India has been issuing instructions to RRBs regarding opening/shifting/merger of branches/extension counters/offices, etc. from time to time. With a view to consolidating all the current instruction

RBI/2006-2007/445RPCD.CO.RRB.No.BC..106 /03.05.33(C)/2006-07June 28, 2007All Regional Rural Banks Dear Sir, Authorisation to open/maintain NRO/NRE Accounts in rupees and to accept FCNR deposits Please refer to our circular RPCD.RRB.No.BC.89/03.05.33(C)/99-2000 dated April 28, 2000 on authorisation to RRBs to open and maintain non-resident accounts in rupees.2. As announced in the Union Budget for 2007-08, it has been decided to permit RRBs to accept FCNR (B) deposits.

RBI/2006-2007/443 RPCD.CO. RRB. No. BC. 105@@NBSP@@ /03.05.90-A /2006-07 June 22, 2007 All Regional Rural Banks Dear Sir, Section 23 of Banking Regulation Act, 1949-Master Circular on Branch Licensing - RRBs Please refer to our circular RPCD.CO.RRB.No BL.BC. 11 / 03. 05.90-A /2006-07 dated July 11, 2006 on on the captioned subject. 2. With a view to providing further liberalisation, it has been decided that RRBs may be allowed to set up Service Branches / Central Proc

RBI/2006-2007/440RPCD.CO No.RRB.BC.104/03.05.34/2006-07June 19, 2007 The ChairmenAll Regional Rural Banks Dear Sir,RRBs - Participation in consortium lendingWith a view to providing more business avenues and opportunities to RRBs for lending, it has been decided to permit them to participate in consortium lending, within the extant exposure limits, with their sponsor banks as also with other public sector banks and developmental financial institutions (DFIs), subject

RBI/2006-2007/438RPCD.CO.RRB.No.BC.102/03.05.90-A/2006-07June 15, 2007All Regional Rural Banks Dear Sir, Section 23 of the Banking Regulation Act, 1949 – Master Circular on Branch Licensing - Regional Rural Banks (RRBs)Please refer to our circular RPCD.CO.RRB.No.BL.BC/11/03.05.90-A/2006-07 dated July 11, 2006 on the above subject.2. With a view to encouraging RRBs to open branches in hitherto uncovered districts, it has been decided that the compliance with conditions

RBI/2006-2007/400 RPCD.CO.RF.BC No. 95/07.38.01/2006-07 May 18, 2007All State and Central Co-operative Banks Dear Sir,Extension of Safe Deposit Locker / Safe Custody Article Facility and Access to Safe Deposit Lockers / Return of Safe Custody Articles by banks. The Committee on Procedures and Performance Audit on Public Services (CPPAPS) had made some recommendations for easy operation of lockers. We have reviewed all the guidelines issued by us on various issues rela

RBI/2006-2007/395RPCD.CO.RF.BC.No.93/07.38.01/2006-07May 16, 2007@@NBSP@@The Chairman / Chief Executive Officer/Managing Director,All State Co-operative Banks (StCBs) andDistrict Central Co-operative Banks (DCCBs)Dear Sir,Annual Policy Statement for the year 2007- 08 –Complaints about excessive interest charged by banks Please refer to the paragraph 168 of the Annual Policy Statement for the year 2007-08 (a copy of the extract enclosed).2. The Reserve Bank of India ha

RBI/2006-2007/394RPCD.CO. RRB. BC. No. 92/03.05.28-B /2006-07May 15, 2007All Regional Rural BanksDear SirComplaints about excessive interest charged by banks- Regional Rural Banks (RRBs)Please refer to paragraph 168 of the Annual Policy Statement for the year 2007-08 (copy enclosed).2. The Reserve Bank and Banking Ombudsmans' offices have been receiving several complaints regarding levying of excessive interest and charges on certain loans and advances. In this connec

RBI/2006-2007/383RPCD.RRB.BC.No.87/03.05.34/2006-07May 8, 2007The ChairmenAll Regional Rural Banks/Sponsor BanksDear Sir, Valuation of investment in SLR/Approved Securities byRegional Rural Banks (RRBs)Please refer to our circular RPCD.RRB.BC.No.71/03.05.34/2005-06 dated March 31, 2006 on the above subject.2. The matter has been reviewed and it has been decided that the exemption granted to RRBs up to the financial year 2006-07 from 'mark to market' norms in respect o

RBI/2006-2007/371 RPCD.CO RRB.BC.No.86/03.05.33(G)/2006-07 May 3, 2007 Chairmen, All Regional Rural Banks Dear Sir, Entry of@@NBSP@@ Regional Rural Banks (RRBs) into insurance agency business It has been proposed in the Bank's Annual Policy Statement for the year 2007-08 (paragraph 153), announced on April 24, 2007, that as a measure of providing further business opportunities, RRBs would be allowed to take up corporate agency business, without risk participation, for

RBI/2006-2007/351 RPCD.CO.RF.BC.No.79/07.38.01/2006-07April 26, 2007 All State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) Dear Sir,Interest Rate on Non-Resident (External) Rupee (NRE) Deposits Please refer to our Circular RPCD.CO.RF.BC.No.44/07.38.01/2006-07 dated February 6, 2007 on Interest Rate on NRE Rupee Deposits. In the Annual Policy Statement for the year 2007-08, announced on April 24, 2007 (extract of paragraphs 114, 115 and 1

RBI/2006-2007/352 RPCD.CO.RF.BC.No.81/ 07.38.01/2006-07 April 26, 2007 The Managing Director Maharashtra State Co-operative Bank Ltd. 9, Nagindas Master Road Extension, Fort Mumbai-1 Dear Sir, Interest Rate on FCNR(B) Deposits Please refer to our circular RPCD.CO.RF.BC.46 / 07.38.01 / 2006-07 February 6, 2007on Interest Rate on FCNR(B) Deposits. In the Annual Policy Statement for the year 2007-08, announced on April 24, 2007 (extract of paragraphs 114,115 and 116 encl

RBI/2006-2007/341RPCD.RRB.CO.BC.No.72/03.05.28(B)/2006-07April 24, 2007All Regional Rural BanksDear Sir,Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories Please refer to our Circular RPCD.CO.RRB.BC.No.52/03.05.28(B)/2006-07 dated March 2, 2007 on the captioned subject. Consequent upon the notification of Section 3 of the Reserve Bank of India (Amendment) Act, 2006 as coming into force with effect from April 01,2007, the statutory minimum CRR requirement o

RBI/2006-2007/342RPCD.RRB.CO.BC.No.73/03.05.28(B)/2006-07April 24, 2007All Regional Rural Banks Dear Sir,Section 42(1) of Reserve Bank of India Act, 1934 –Maintenance of Cash Reserve Ratio (CRR) Please refer to our Circulars RPCD.RRB.CO.BC.No.51/03.05.28(B)/2006-07 dated March 02, 2007 and RPCD.RRB.CO.BC.No.66/03.05.28(B)/2006-07 dated April 04, 2007 on the captioned subject. Government of India in their Extraordinary Gazette notification No.S.O.337(E) dated March 9,

RBI/2006-2007/322 RPCD.CO.RRB.BC.No.71 /03.05.33//2006-07 April 13, 2007 The Chairmen All Regional Rural Banks Dear Sir, Nomination Facility in Single Deposit Accounts Please refer to Paragraph 9 of the circular RPCD.CO.RRB.BC.22/03.05.33/2005-06 dated July 19, 2005 on the above subject wherein banks were advised to give wide publicity and provide guidance to deposit account holders on the benefits of nomination facility and the survivorship clause. We feel that despi

RBI/2006-2007/318 RPCD.CO.RF. BC.No. 70 /07.38.01/2006-07April 12, 2007The Chairmen/CEOs All State and District Central Co-operative BanksDear Sir,Nomination Facility in Single Deposit Accounts Please refer to Paragraph 9 of the circular RPCD.CO.RF.BC.No.12/07.38.01/ 2005-06 dated July 12, 2005 on the above subject wherein banks were advised to give wide publicity and provide guidance to deposit account holders on the benefits of nomination facility and the survivorsh

RBI/2006-2007/317 RPCD.CO.No.RRB.BC.69/03.05.33/2006-07 April 11, 2007 All Regional Rural Banks Dear Sir, Rounding off amounts of cheques to the nearest rupee We advise that recently a case involving refusal by a bank to accept a draft drawn in fraction of a rupee lodged for collection to the credit of Government account came up before the High Court of Gujarat, Ahmedabad. The High Court of Gujarat, taking a serious view in the matter, has directed Reserve Bank of Ind

RBI/2006-2007/315 RPCD.CO.RF.BC.No.67 /07.02.01/2006-07 April 9, 2007 All State and Central Co-operative Banks Dear Sir Rounding off Transactions to the nearest rupee Please refer to our circular RPCD.No.RF.BC.68/D.1-90-91 dated January 1, 1991, in terms of which banks were advised that all transactions, including payment of interest on deposits/charging of interest on advances, should be rounded off to the nearest rupee; i.e. fraction of 50 paise and above shall be r

RBI/2006-2007/308RPCD. RRB. CO. BC. No.66/03.05.28(B)/2006-07April 4, 2007 All Regional Rural Banks Dear Sir,Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR)-RRBsPlease refer to our circular RPCD.CO.RRB.BC.50/03.05.28(B)/2006-07 dated February 14, 2007 read with circular RPCD.RRB.CO.BC. No.51/03.05.28(B)/ 2006-07 dated March 02, 2007 on the captioned subject. As set out in Press Release: 2006-2007/1336 dated March 30, 2007, it h

RBI/2006-2007/297RPCD. CO.RRB. No. BC. 61/03.05.33(E)/2006-2007March 29, 2007All Regional Rural Banks Dear SirGrant of Loans for acquisition of Kisan Vikas Patras (KVPs) We have recently come across certain instances where banks had sanctioned loans to individuals (mostly High Net worth Individuals-HNIs) for acquisition of Kisan Vikas Patras (KVPs).  The HNIs were first required to bring in 10% of the total face value of the proposed investment in the KVPs as mar

RBI/2006-2007/292 RPCD.CO.RF.BC.No.57/07.40.06/2006-07 March 23, 2007 The Chief Executive Officers of All State / Central Co-operative Banks (StCBs/DCCBs)Dear Sir/Madam,Grant of Loans for acquisition of Kisan Vikas Patras (KVPs) We have recently come across certain instances where banks had sanctioned loans to individuals for acquisition of Kisan Vikas Patras (KVPs).  The individuals were first required to bring in 10% of the total face value of the proposed inve

RBI/2006-2007/275 RPCD. CO.RRB.BC. No. 52 /03.05.28(B)/2006-07March 02, 2007All Regional Rural BanksDear Sir,Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories- RRBsPlease refer to our Circular RPCD.RF.BC.94/07.02.01/2005-06 dated June 22, 2006 on the captioned subject. It has been decided to withdraw the above circular with immediate effect. It has, however, been decided that every Regional Rural Bank shall continue to be exempted from maintaining average

RBI/2006-2007/274 RPCD. RRB. CO. BC. No.51/03.05.28(B)/2006-07March 02, 2007All Regional Rural BanksDear Sir,Section 42(1) of Reserve Bank of India Act, 1934- Maintenance of Cash Reserve Ratio (CRR)-RRBsPlease refer to our Circular RPCD.RF.BC.93/07.02.01/2005-06 dated June 22, 2006 on the captioned subject. Government of India in their Extraordinary Gazette notification No.S.O.21(E) dated January 9, 2007 have notified January 9, 2007 as the date on which all the provi

RBI/2006-2007/277 RPCD.RF.BC.56/07.02.01/2006-07March 02, 2007All Scheduled State Co-operative Banks Dear Sir,Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories Please refer to our Circular RBI/2005-2006/425 RPCD.RF.BC.94/07.02.01/2005-06 dated June 22, 2006 on the captioned subject. It has been decided to withdraw the above circular with immediate effect. It has, however, been decided that every Scheduled State Co-operative Bank shall continue to be exemp

RBI/2006-2007/257RPCD.CO.RF.BC 49 /07.02.01/2006-07 February 14, 2007All Scheduled State Co-operative Banks Dear Sir,Section 42 (1) of Reserve Bank of India Act, 1934 – Maintenance of CRRPlease refer to our circular RPCD.CO.RF.BC.38/07.02.01/2006-2007 (RBI/2006-07/202) dated December 11, 2006 on the above subject. As set out in Press Release: 2006-07/1094 dated February 13, 2007, it has been decided to increase Cash Reserve Ratio (CRR) of all Scheduled State Co-operat

RBI/2006-2007/254 RPCD.No.RRB.BC.48/03.05.33(C)/2006-07 February 9. 2007 All Regional Rural Banks Dear Sir, Interest Rate on Non-Resident (External) Rupee (NRE) Deposits Please refer to paragraph 86 of the Third Quarter Review of the Annual Policy Statement for the year 2006-07, announced on January 31, 2007 (copy of the paragraph enclosed). 2. In this context, please refer to our circular RPCD.No.RRB.BC.76/ 03.05.33(C)/2005-06 dated April 19, 2006 on Interest Rates o