Second Schedule to the Reserve Bank of India Act, 1934 – Norms for inclusion Please refer to our circular UBD No. BPD 3/16.05.00/2004-05 dated July 13, 2004 on the captioned subject in terms of which UCBs were advised of our decision to not consider for the time being any application for inclusion in the Second Schedule of the Reserve Bank of India Act, 1934. 2. It has now been decided to consider applications from UCBs for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934. We enclose a copy of the Government of India notification F.No.3/42/2011-AC dated April 29, 2013 published in the Gazette of India dated May 04, 2013 notifying that with effect from April 01, 2013, only such of the primary co-operative banks as are licensed and whose Demand and Time Liabilities (DTL) are not less than `750 crore would be treated as a ‘financial institution’ for the purpose of sub-clause (iii) of clause (a) of Sub-Section (6) of Section 42 of the Reserve Bank of India Act, 1934, i.e. for the purpose of inclusion of UCBs in the Second Schedule to the Reserve Bank of India Act, 1934. 3. UCBs desirous of seeking inclusion in the Second Schedule to the RBI Act, 1934 and fulfilling the following financial criteria based on the assessed financials as per inspection reports, viz. DTL of not less than `750 crore on a continuous basis for one year; CRAR of minimum 12%; Continuous net profit for the previous three years; Gross NPAs of 5% or less; Compliance with CRR / SLR requirements and No major regulatory and supervisory concerns may submit their application along with relevant documents (two sets) as detailed in the Annex, to the Regional Office concerned of Urban Banks Department.
Posted on: Sat, 28 Sep 2013 06:25:50 +0000
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