RBI permits RRBs to open counters at worship places

Mumbai, Sep 4 (UNI) In a bid to boost the business prospects of Regional Rural Banks (RRBs), the Reserve Bank of India (RBI) today permitted RRBs to set up extension counters at places of worship and market places.

The move, which is expected to be in favour of RRBs to expand their business by accepting deposits from rural customers, has come as part of efforts mooted by RBI to further liberalise the norms for RRBs in opening extension counters.

''With a view to provide further liberalisation in the matter, it has been decided to allow RRBs to set up Extension Counters at places of worship and market places. The condition of being principal bankers would not apply in such cases,'' said RBI in a notification today.

RRBs, who want to open extension counters, have to seek prior permission from the central bank.

''RBI's permission for opening ECs will help RRBs to grow their deposit margins. While such counters can also be converted into branches at a later stage with the permission of RBI, these will also help a large chunk of common customers to avail the benefits of banking,'' said a senior manager with a public sector bank while commenting on the development.

RRBs were not allowed to open extension counters at places of worship and market places till this day. The present directive has followed an earlier notification issued by apex bank dated July 2 in this regard.

UNI