RBI allows financially sound UCBs to provide doorstep banking services

Circular No. RBI/2022-23/66 DOR.REG.No.45/19.51.052/2022-23, Dated: 08.06.2022

The RBI has decided to allow financially sound and well managed (FSWM) Primary (Urban) Co-operative Banks (UCBs) to provide Doorstep Banking Services to their customers on a voluntary basis. However, Non-FSWM UCBs would have to seek prior approval from the concerned Regional Office of the Department of Supervision of the Reserve Bank to provide Doorstep Banking Services. Eligible UCBs may formulate a scheme for providing doorstep Services with the approval of their Boards.

The RBI has further advised the UCBs to take into account the various risks that may arise on account of offering Doorstep Banking Services to customers either directly through their own employees or through agents and take all necessary steps to manage the same. The operation of the scheme may also be reviewed by the Boards of UCBs on a half-yearly basis during the first year of its operation. The scheme may be reviewed thereafter on an annual basis.

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