Question: Recently RBI issued Uniform Guidelines for Cooperative banks on-
(a) Provision for loans
(b) Internet Banking
(c) Industrial Development
(d) To provide high interest rate
- On 5 November 2015 RBI issued uniform guidelines on internet banking for Cooperative Banks.
- These guidelines are for all licensed cooperative banks including Urban Cooperative Banks (UCBs), State Cooperative Banks (StCBs) and Districts Co-operative Banks (DCBs).
- These guidelines relate to Internet Banking (View Only) facility and Internet Banking with Transaction facility.
- According to new guidelines all licensed StCBs, DCCBs and UCBs which have implemented Core Banking Solution (CBS) and migrated to Internet Protocol Version 6 (IPv6) may offer Internet Banking (View only) facility to their customers, without prior approval of RBI.
- In case, any service offered under ‘view only’ facility requires two-factor authentication or One Time Password (OTP), banks may adopt the security features related to internet banking as prescribed by RBI, as appropriate to such services.
- The cooperative banks providing above services should ensure that the facility is strictly for non-transactional services such as balance enquiry, balance viewing, account statement download, request for supply of cheque books, etc.
- All license holders Cooperative banks providing Internet banking with the transactions facility should be in a position to meet the following criteria:
- (Credit to Risk Adequacy Ratio) CRAR of not less than 10 per cent.
- Net worth is Rs. 50 crore or more as on March 31 of the immediate preceding financial year.
- Gross Non-Performing Assets (NPAs) less than 7 % and Net NPAs not more than 3%.
- The bank should have made a net profit in the immediate preceding financial year and overall, should have made net profit at least in three out of the preceding four financial years.