RBI issued Uniform Guidelines on Internet Banking for Cooperative Banks

Internet Banking Facility for Customers of Cooperative Banks

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

Ans (b)

Related facts:

  • 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.

Reference:

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10111&Mode=0

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