Latest news with #FSWM
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Business Standard
28-07-2025
- Business
- Business Standard
RBI proposes new regime for co-op bank branch expansion, ATM setup
As part of regulatory reforms, the Reserve Bank of India (RBI) has proposed a new regime — the Eligibility Criteria for Business Authorisation (ECBA) — for granting permissions and approvals to urban co-operative banks (UCBs) to open new branches, set up ATMs, processing centres, and other infrastructure. This will replace the current Financially Sound and Well Managed (FSWM) framework. A bank will be considered fully compliant with ECBA if it meets specified conditions related to capital adequacy, asset quality, profitability, reserve ratios, and more, based on the audited financial statements as of 31 March of the immediately preceding financial year, the RBI said in its draft Master Direction. The regulator said banks must maintain the regulatory minimum applicable capital adequacy ratio (CAR). Their net non-performing assets (NPAs) should not exceed three per cent. Additionally, the bank must have reported net profit for the preceding two financial years without any accumulated losses on the balance sheet. There should be no default in the maintenance of the cash reserve ratio (CRR) or statutory liquidity ratio (SLR) during the current or preceding financial year. Banks must have fully implemented Core Banking Solutions (CBS). The bank must not be under any directions from the RBI, or subject to the Supervisory Action Framework or Prompt Corrective Action (PCA) in the previous or current financial year. It should also have at least two professional directors on its board. A bank shall determine its compliance with the ECBA every year based on the audited financial statements for the immediately preceding financial year. The board of the bank must satisfy itself regarding compliance and pass a resolution approving the same. The RBI should be notified within 15 calendar days from the date of the board resolution. The period of validity for ECBA compliance will be considered valid up to 30 September of the next financial year.
Business Standard
28-07-2025
- Business
- Business Standard
RBI comes up with master direction - business authorization for Co-operative banks
The Reserve Bank of India (RBI) has announced Master Direction - Business Authorization for Co-operative Banks (Directions), 2025 today. The provisions of this Direction shall apply to all co-operative banks, i.e., Primary (Urban) Co-operative Banks (UCBs), State Co-operative banks (StCBs) and District Central Co-operative banks (DCCBs). The central bank noted that based on a comprehensive review, it has been decided to replace the Financially Sound and Well Managed (FSWM) norms for UCBs with harmonised eligibility criteria for all banks for certain business authorizations/permissions/approvals. These criteria will be referred to as Eligibility Criteria for Business Authorization (ECBA). Any reference to FSWM criteria in any other circular issued by the Reserve Bank may, henceforth, be considered as a reference to compliance with ECBA. It noted that prior permission from the Reserve Bank is required for opening a new place of business including Branches, Extension Counters, ATMs, Controlling Offices (Regional/ Zonal/Administrative Office), Central Processing Centres, Regional Collection Centres, Retail Asset Processing Centres, Service Branches, Back Offices etc. or for changing the location of any existing place of business under Section 23 of the BR Act, 1949 read with Section 56 thereof. Opening a new place of business without valid authorization from the Reserve Bank, unless otherwise permitted by the Reserve Bank, is a violation of the said Act and is liable for penal action. The bank should ensure that there are no restrictions imposed by the local development or other authorities for setting up a commercial establishment in the locality where the new place of business is proposed to be opened.
United News of India
11-06-2025
- Business
- United News of India
Vishweshwar Cooperative Bank gets Scheduled Bank Status
Pune, June 11 (UNI) City-headquartered Vishweshvar Cooperative Bank Ltd has got the Scheduled Bank Status from the Reserve Bank of India. "This underlines the trustworthiness and functioning of the bank and we stand committed to keep doing our best. With this Vishweshwar Cooperative Bank has becomes the 50th cooperative bank from the country and the 3rd Bank from the city of Pune to get this status of a Scheduled Bank from the RBI," informed Anil Gadve, Chairman of the Bank during a Press Conference today. Rajendra Mirje, Vice Chairman, and Shriram Apte, CEO of the Bank, were present on the occasion. The Bank has been giving 10 percent dividend to its members since the past many years. The Vishweshwar Bank has been consistently following the RBI guidelines of "Financially Sound and Well Managed" (FSWM), he said. UNI SP RN
