UCBs desirous of opening such specialized branches may include the proposal in their Annual Business Plan
The Reserve Bank of India (RBI) has allowed financially strong and well-managed urban cooperative banks (UCBs) to open specialised branches, or central processing and retail assets processing centres.
The central bank had been receiving requests from banks to set up Specialized Branches like Central Processing Centres (CPCs)/ Retail Assets Processing Centres/ Regional/ Zonal Processing Centres.
Need based authorizations for such branches would be considered for UCBs with a large network of branches having substantial volume of business to handle and process, which may ultimately result in cost reduction and faster approvals. UCBs desirous of opening such specialized branches may include the proposal in their Annual Business Plan explaining the need and objective for opening such centres, RBI said in a notification on Thursday.
UCBs authorized to open such branches should be fully computerized. These branches should be opened within the Area of Operation of the UCB as approved by RBI and should be opened on a cluster approach, i.e. certain number of branches should be linked to a specialized branch.
The branch should be opened at the place for which authorization has been issued by RBI and conversion from specialized branch to a normal branch and vice-versa should be carried out only with the prior approval of RBI.
These branches shall not have any direct interface/ business transactions with customers except for creation of equitable mortgage, execution/ release of loan documents, initiation of recovery and follow-up measures etc, the RBI added.
The Reserve Bank of India (RBI) has allowed financially strong and well-managed urban cooperative banks (UCBs) to open specialised branches, or central processing and retail assets processing centres.
The central bank had been receiving requests from banks to set up Specialized Branches like Central Processing Centres (CPCs)/ Retail Assets Processing Centres/ Regional/ Zonal Processing Centres.
Need based authorizations for such branches would be considered for UCBs with a large network of branches having substantial volume of business to handle and process, which may ultimately result in cost reduction and faster approvals. UCBs desirous of opening such specialized branches may include the proposal in their Annual Business Plan explaining the need and objective for opening such centres, RBI said in a notification on Thursday.
UCBs authorized to open such branches should be fully computerized. These branches should be opened within the Area of Operation of the UCB as approved by RBI and should be opened on a cluster approach, i.e. certain number of branches should be linked to a specialized branch.
The branch should be opened at the place for which authorization has been issued by RBI and conversion from specialized branch to a normal branch and vice-versa should be carried out only with the prior approval of RBI.
These branches shall not have any direct interface/ business transactions with customers except for creation of equitable mortgage, execution/ release of loan documents, initiation of recovery and follow-up measures etc, the RBI added.
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