RBI revises eligibility criteria to seek approval for offering internet banking with transactional facility by RRBs

Circular no. RBI/2022-23/135 DoR.AUT.REC.81/24.01.001/2022-23, Dated 01.11.2022

Earlier, RBI vide circular dated November 19, 2015 issued instructions on ‘Internet Banking Facility for Customers of Regional Rural Banks’ (RRBs). In order to promote the spread of digital banking for customers in rural areas, RBI now has revised the eligibility criteria applicable to RRBs for offering internet banking with a transactional facility to their customers. The circular is applicable to all RRBs and shall come into force w.e.f 01.11.2022.

The revised eligibility criteria to seek approval for providing Internet Banking with transactional facility by RRBs to their customers are listed below:

(a) Full implementation of Core Banking Solutions (CBS) and migration to IPv6

(b) Compliance with minimum prescribed Capital to Risk Weighted Asset Ratio (CRAR) requirement as applicable from time to time.

(c) Net worth of Rs.50 crore or more as on March 31 of the previous financial year.

(d) Net NPA of not more than 5% as on March 31 of the previous financial year.

(e) Net profit in the two immediately preceding financial years.

(f) No instance of default in maintenance of CRR/SLR during the immediately preceding financial year.

(g) The bank shall have a satisfactory track record of regulatory compliance and there shall be no instances of the monetary penalty imposed for violation of RBI directives/guidelines during the two preceding financial years.

(h) The bank shall have a sound internal control system approved by a CISA-qualified independent auditor.

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