RBI allows RRBs to set up back offices

Mumbai, Jun 22 (UNI) Door is now open for Regional Rural Banks(RRBs) to set up central processing centers (CPCs) for executing their back office operations.

The Reserve Bank of India (RBI), in a notifiction issued today, has extended nod to RRBs to open service branches, CPCs and back offices to shift their back office operations.

These centers will function in back office operations that mainly include Data Processing, Document Verification procedures, Issuance of Cheque books and Demand Drafts.

''With a view to provide further liberalisation, it has been decided that RRBs may be allowed to set up Service Branches / Central Processing Centres (CPCs) / Back Offices exclusively to attend to back office functions,'' says the RBI notification.

However, the Central Bank has specified that these centers shall not exercise any interface with customers. This apart, RRBs are not allowed to convert these centers into general banking branches.

''These offices would be treated on par with a branch and the RRBs shall be required to obtain necessary licence from the concerned Regional Office of RBI (RPCD),'' the notification adds.

UNI