abhishreshthaa
Abhijeet S
Extension Counters
RBI has revised the existing policy for opening of extension counters by UCBs.
Eligibility norms :
An UCB, which desires to open extension counters, should comply with the following norms; Licensed urban co-operative banks which are not classified as weak / sick, are eligible to open extension counters. Only scheduled urban co-operative banks, which fulfill the norms prescribed by the Reserve Bank of India can open extension counters, without prior permission.
However, such banks should approach the concerned regional office of the Reserve Bank for post facto approval, within one month from the date of opening of extension counters. Non-scheduled UCBs have to obtain prior approval of the Reserve Bank for opening extension counters within the premises of educational institutions, big offices, factories and hospitals of which the concerned UCB is the principal banker.
Request from other banks to the institution may be considered, only if opening of an extension counter is not considered feasible by the principal banker and / or its base branch is beyond 10 kilometers from the extension counter. No extension counter should be opened in market place, residential colony, shopping centre, etc.
The number of direct beneficiaries / accounts attached to the institution should be at least 500. Extension counters should not be opened merely for collection of fees, payment of bills for electricity, water, telephones, etc. These are primarily the responsibilities of the concerned institution.
Facilities
The facilities at an extension counter should be restricted to acceptance of deposits; issue and encashment of drafts and mail transfers; encashment of travelers’ cheques and collection of bills.
RBI has revised the existing policy for opening of extension counters by UCBs.
Eligibility norms :
An UCB, which desires to open extension counters, should comply with the following norms; Licensed urban co-operative banks which are not classified as weak / sick, are eligible to open extension counters. Only scheduled urban co-operative banks, which fulfill the norms prescribed by the Reserve Bank of India can open extension counters, without prior permission.
However, such banks should approach the concerned regional office of the Reserve Bank for post facto approval, within one month from the date of opening of extension counters. Non-scheduled UCBs have to obtain prior approval of the Reserve Bank for opening extension counters within the premises of educational institutions, big offices, factories and hospitals of which the concerned UCB is the principal banker.
Request from other banks to the institution may be considered, only if opening of an extension counter is not considered feasible by the principal banker and / or its base branch is beyond 10 kilometers from the extension counter. No extension counter should be opened in market place, residential colony, shopping centre, etc.
The number of direct beneficiaries / accounts attached to the institution should be at least 500. Extension counters should not be opened merely for collection of fees, payment of bills for electricity, water, telephones, etc. These are primarily the responsibilities of the concerned institution.
Facilities
The facilities at an extension counter should be restricted to acceptance of deposits; issue and encashment of drafts and mail transfers; encashment of travelers’ cheques and collection of bills.