MANU/RMIC/0158/2015

Ministry : Reserve Bank of India

Department/Board : Department of Co operative Banking Regulation

Circular No. : DCBR.CO.RCB.No.BC.29/19.51.008/2014-2015
                   RBI/2014-2015/556

Date : 16.04.2015

All State Co-operative Banks

Dear Sir,

Section 23 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) - Guidelines on Off-site/Mobile Automated Teller Machines (ATMs)

Please refer to our circular RPCD.No.BC.114/07.06.00-94/95 dated February 1, 1995, in terms of which State Cooperative Banks (StCBs) are permitted to install on-site ATMs without obtaining prior permission from RBI. In terms of para 27 of the First Bi-monthly Monetary Policy Statement, 2015-16, it has now been decided that the State Co-operative Banks may be allowed to install Off-site ATMs/Mobile ATMs as per their need and potential in their area of operation without prior permission from RBI subject to satisfying the following criteria.

a. CRAR not being less than 9 per cent

b. No default in maintenance of CRR/SLR during the preceding financial year

c. Net NPA being less than 5 per cent

d. The bank should have a track record of regulatory compliance and no monetary penalty should have been imposed on the bank on account of violation of RBI directives/guidelines during last two financial years

The above parameters should be as assessed by NABARD in their latest inspection report.

2. The StCBs may ensure that the proposals for the installation of Off-site/Mobile ATMs are duly approved by their Board of Directors.

3. The conditions subject to which Off-site/Mobile ATMs can be operationalised by the StCBs are furnished in Annex-I.