RBI revises norms on Rural Branches
Mumbai, June 18 (UNI) The Reserve bank today revised norms for banks to set up branches in rural unbanked sectors.
As per the revised norms, concerned Empowered Committee for Regional Rural Banks (RRBs) can decide on certain matters like ratio of Non Performing Assets (NPA), Performances of banks in preceding years and on fresh recruitments, which was earlier mandated for opening Rural branches.
RBI, in an earlier circular issued on July 11, 2006, had made it necessary for RRBs to keep their net NPA levels less than the national average and had also insisted on profit making performance in last two years.
This apart, the banks were also not permitted to resort to fresh recruitments for the new branches.
However,
in
the
new
notification
issued
today,
the
central
bank
has
said
''
With
a
view
to
encourage
RRBs
to
open
branches
in
hitherto
uncovered
districts,
it
has
been
decided
that
the
compliance
with
conditions
prescribed
in
the
above
circular
may
be
left
to
the
discretion
of
the
concerned
Empowered
Committee
for
RRBs.''
UNI