Revised guidelines for ‘Internet Facility for customers of Regional Rural Bank’

RBI on Tuesday amended its circular dated November 19, 2015, for extending internet banking services with transactional facilities by the Regional Rural Banks (RRBs) to promote and spread digital banking for customers in rural areas.

‘Keeping in view the need to promote the spread of digital banking for customers in rural areas, the eligibility criteria applicable to Regional Rural Banks for offering Internet Banking with a transactional facility to their customers have been revised’ said RBI.

The revised eligibility criteria to seek approval for providing Internet Banking with transactional facility by RRBs to their customers are as under:

1. Full implementation of Core Banking Solutions (CBS) and migration to IPv6.
2. Compliance with minimum prescribed CRAR requirement as applicable from time to time.
3. The net worth of ₹50 crores or more as on March 31 of the previous financial year.
4. Net NPA of not more than 5% as on March 31 of the previous financial year.
5. Net profit in the two immediately preceding financial years.
6. No instance of default in maintenance of CRR/SLR during the immediately preceding financial year.
7. The bank shall have a satisfactory track record of regulatory compliance and there shall be no instances of the monetary penalty imposed for violation of RBI directives/guidelines during the two preceding financial years.

The notification mentioned that ‘for extending internet banking services with the transactional facility, RRBs shall submit an application to the concerned Regional Office of RBI through NABARD after fulfilling above-mentioned criteria and other conditions mentioned in RBI circular dated November 19, 2015.