RBI Decision: Under the Banking Regulation Amendment Act 2020, the new rule related to changing the names of co-operative banks has been implemented by RBI today by issuing a notification.
The country’s central bank and bank regulator Reserve Bank of India has today implemented new rules for co-operative banks. Under this, no co-operative bank can change its name. They can change their name only if RBI tells them in writing that it has no objection to changing the name of the bank.
RBI issued guidelines
Until the Reserve Bank certifies that there is no objection to such a change, it can be maintained. Therefore, RBI has decided to issue guidelines regarding the process to be done. (CRCS)/Registrar of Cooperative Societies (RCS) will not be indicated for its approval.
RBI has made it clear in its notification that these guidelines will come into effect as soon as this circular is issued. Sections 49B and 49C of the Banking Regulation Act (BR Act) 1949 apply to cooperative banks. The rules of its section 49B are applicable to the Central Registrar of Cooperative Societies.
RBI also issued a clarification
Apart from this new rule, RBI has also issued a clarification and this is also related to cooperative banks. These guidelines have been issued for all District Central Co-operative Banks (DCCBs). From now on, District Central Cooperative Banks will require written approval of RBI for opening new offices, opening new branches, installing ATMs and changing the location of their offices.
Similarly, RBI has made it clear that according to the Banking Regulation Act 1949 (which is applicable to District Central Co-operative Banks), information will have to be given to the Reserve Bank for opening new places of business and information about change of location will also have to be given. Actually, RBI was receiving complaints in this regard for some time and there was a demand that RBI should issue clarification regarding these.
DCCBs will need written approval from RBI
After examining some matters related to this matter, RBI has decided that DCCBs will need written approval from RBI for opening new branches, opening new offices or expanding branches in the same city, village or town. For this, guidelines are being issued which DCCBs will have to follow. This circular is applicable to all District Central Co-operative Banks.
