What happened (announced RBI-enabled operational and regulatory relaxations)
RBI-enabled cooperative banking reforms announced by the Ministry of Cooperation focus on making cooperative banks operationally more flexible and technologically enabled. The reforms cover branch expansion, doorstep banking, AePS (Aadhaar Enabled Payment System) onboarding changes, and RBI master direction updates for authorisation and compliance.
Branch flexibility for UCBs (Urban Cooperative Banks)
RBI allows UCBs to open new branches without prior RBI approval within a capped limit.
Key limits stated in the announcement:
• UCBs allowed to open new branches up to 15% of existing branches, with an overall maximum of 10 new branches, without prior RBI approval.
Related current affairs
- Amit Shah inaugurates NUCFDC new premises in Mumbai; launches ‘Sahkar Nav-Kranti’ for modernising Urban Cooperative Banks
- Amit Shah inaugurates NUCFDC’s new Mumbai office; MoU with NFSU and cyber-security initiatives for Urban Cooperative Banks
- Amit Shah virtually inaugurates ‘Sahakar Bhavan’ of Jamnagar District Cooperative Bank
- Ministry of Cooperation proposal to expand cooperative banks’ role as insurance corporate agents
- Status of PACS Computerisation in Rajasthan and financial assistance