• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

RRBs will now submit the applications to the respective regional offices of Nabard with advance copies to the regional office of RBI concerned. Empowered committee to decide

Mumbai , June 13

The Reserve Bank of India has liberalised and simplified the branch licensing policy for regional rural banks (RRBs).

Under the new dispensation, the empowered committees for RRBs, constituted by RBI at its regional offices, will deliberate and make recommendations on the applications for opening, shifting or merger of branches.

applications

Presently, RRBs are required to submit their applications to RBI through the National Bank for Agriculture and Rural Development (Nabard) and duly recommended by the sponsor banks. In the simplified regime, RBI will take into account the recommendations of the regional committees and dispose of the applications. Accordingly, RRBs will now submit the applications to the respective regional offices of Nabard with advance copies to the regional office of RBI concerned.

No separate approval of the sponsor bank is required under the new format. Further, approval of the sub-group of District Consultative Committee (DCC) will also not be required for opening of branches.

However, in the case of shifting/merger of branches, the approval of the sub-group of DCC is required as has been the practice, according to an RBI notification. Similarly, requests from RRBs for conduct of foreign exchange business, as limited authorised dealers for current account transactions, will be considered by RBI after clearance by the empowered committees.

More Stories on : Regional Rural Banks | RBI & Other Central Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
RRB branch licensing policy liberalised

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line