Latest news with #UCBs
&w=3840&q=100)
Business Standard
3 days ago
- 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.
Time of India
3 days ago
- Business
- Time of India
RBI proposes easing business authorisation norms for urban cooperative banks
The RBI on Monday proposed to replace the existing norms for urban cooperative banks (UCBs) with a harmonised eligibility criteria for certain business authorisations, permissions and approvals. The Reserve Bank has proposed that large UCBs (falling in Tier 3 and Tier 4 categories) which are in compliance with eligibility criteria for business authorisation (ECBA) and having a minimum assessed net worth (ANW) of Rs 50 crore may extend their area of operation beyond the state of registration, subject to prior approval of the Reserve Bank. Explore courses from Top Institutes in Please select course: Select a Course Category others CXO Finance Design Thinking Technology Others Data Science Data Science Data Analytics Product Management Operations Management Leadership Artificial Intelligence Digital Marketing MCA Healthcare Public Policy Degree PGDM Management Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details The UCB would be permitted to extend its area of operation to a maximum of two states in a financial year, subject to the availability of adequate headroom capital required for opening at least five branches in each proposed state, said the draft Master Direction - Business Authorization for Co-operative Banks (Directions), 2025. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Highlights from Bollywood 2025 that captured attention Learn More Undo A UCB may extend its area of operation to the whole of its district of registration without prior permission from the RBI, it said. "A UCB in compliance with ECBA may extend its area of operation to a maximum of three districts of its choice within its state of registration (other than its district of registration), without prior permission from the Reserve Bank," said the draft on which the RBI has invited comments till August 25, 2025. Live Events A bank will be considered as fully complying with ECBA if it meets certain criteria, including regulatory minimum applicable CRAR for the bank, net NPAs of not more than 3 per cent, and net profits during the preceding two financial years. The RBI has categorised UCBs in four tiers for regulatory purposes. UCBs with deposits of more than Rs 1,000 crore and up to Rs 10,000 crore fall in Tier 3 and those with deposits of more than Rs 10,000 in Tier 4. The draft also said a bank should determine its compliance with the ECBA every year based on the audited financial statements as of 31 March of the immediately preceding fiscal year and place it before its Board within 30 days from the date of adoption of the audit report.
Business Standard
3 days ago
- 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.
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
RBI proposes easing business authorisation norms for urban co-op banks
The RBI on Monday proposed to replace the existing norms for urban cooperative banks (UCBs) with a harmonised eligibility criteria for certain business authorisations, permissions and approvals. The Reserve Bank has proposed that large UCBs (falling in Tier 3 and Tier 4 categories) which are in compliance with eligibility criteria for business authorisation (ECBA) and having a minimum assessed net worth (ANW) of Rs 50 crore may extend their area of operation beyond the state of registration, subject to prior approval of the Reserve Bank. The UCB would be permitted to extend its area of operation to a maximum of two states in a financial year, subject to the availability of adequate headroom capital required for opening at least five branches in each proposed state, said the draft Master Direction Business Authorization for Co-operative Banks (Directions), 2025. A UCB may extend its area of operation to the whole of its district of registration without prior permission from the RBI, it said. "A UCB in compliance with ECBA may extend its area of operation to a maximum of three districts of its choice within its state of registration (other than its district of registration), without prior permission from the Reserve Bank," said the draft on which the RBI has invited comments till August 25, 2025. A bank will be considered as fully complying with ECBA if it meets certain criteria, including regulatory minimum applicable CRAR for the bank, net NPAs of not more than 3 per cent, and net profits during the preceding two financial years. The RBI has categorised UCBs in four tiers for regulatory purposes. UCBs with deposits of more than Rs 1,000 crore and up to Rs 10,000 crore fall in Tier 3 and those with deposits of more than Rs 10,000 in Tier 4. The draft also said a bank should determine its compliance with the ECBA every year based on the audited financial statements as of 31 March of the immediately preceding fiscal year and place it before its Board within 30 days from the date of adoption of the audit report. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
News18
3 days ago
- Business
- News18
RBI proposes easing business authorisation norms for urban cooperative banks
Mumbai, Jul 28 (PTI) The RBI on Monday proposed to replace the existing norms for urban cooperative banks (UCBs) with a harmonised eligibility criteria for certain business authorisations, permissions and approvals. The Reserve Bank has proposed that large UCBs (falling in Tier 3 and Tier 4 categories) which are in compliance with eligibility criteria for business authorisation (ECBA) and having a minimum assessed net worth (ANW) of Rs 50 crore may extend their area of operation beyond the state of registration, subject to prior approval of the Reserve Bank. The UCB would be permitted to extend its area of operation to a maximum of two states in a financial year, subject to the availability of adequate headroom capital required for opening at least five branches in each proposed state, said the draft Master Direction – Business Authorization for Co-operative Banks (Directions), 2025. A UCB may extend its area of operation to the whole of its district of registration without prior permission from the RBI, it said. 'A UCB in compliance with ECBA may extend its area of operation to a maximum of three districts of its choice within its state of registration (other than its district of registration), without prior permission from the Reserve Bank," said the draft on which the RBI has invited comments till August 25, 2025. The RBI has categorised UCBs in four tiers for regulatory purposes. UCBs with deposits of more than Rs 1,000 crore and up to Rs 10,000 crore fall in Tier 3 and those with deposits of more than Rs 10,000 in Tier 4. The draft also said a bank should determine its compliance with the ECBA every year based on the audited financial statements as of 31 March of the immediately preceding fiscal year and place it before its Board within 30 days from the date of adoption of the audit report. PTI NKD HVA view comments First Published: July 28, 2025, 18:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
