The Reserve Bank of India (RBI) on August 11, 2022 has issued Notification regarding Section 23 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – Opening of new place of business by District Central Co-operative Banks (DCCBs).
The following has been stated namely: -
• DCCBs satisfying the prescribed criteria, may submit their application in the format prescribed in the Banking Regulation (Co-operative Societies) Rules, 1966 to concerned Regional Office (RO) of the Reserve Bank of India for prior approval for opening of branches/extension counters/specialized branches/regional offices/zonal offices/administrative offices/shifting of branches/upgradation of extension counters into full-fledged branches. The banks shall also forward a copy of the application to NABARD which, in turn, shall forward their recommendation in the matter to concerned RO of the Reserve Bank of India.
• DCCBs shall be allowed to install on-site ATMs without seeking prior approval of the Reserve Bank of India. They may also install off-site/mobile ATMs as per their need and potential in their area of operation without prior permission from the Reserve Bank of India. Further, DCCBs shall ensure that the proposal for installation of off-site/mobile ATMs is duly approved by their Board of Directors.
• DCCBs shall report to concerned Regional Office of the Reserve Bank under whose jurisdiction the Head Office of the DCCB is functioning, immediately after operationalization of the off-site/mobile ATMs and in any case not later than 15 days.
• Annexure I specifies The conditions subject to which off-site/mobile ATMs can be operationalized by DCCBs
• The formats for reporting on-site/off-site/mobile ATMs by DCCBs are furnished in Annex II and Annex III. The reporting requirements are listed in Annex IV
[Notification No. RBI/2022-23/106]
