Eligibility Criteria for offering Internet Banking Facility by Regional Rural Banks, 2022

RBI/2022-23/135
DoR.AUT.REC.81/24.01.001/2022-23

November 01, 2022

Madam / Sir,

Eligibility Criteria for offering Internet Banking Facility by Regional Rural Banks, 2022

In exercise of the powers conferred by Sections 35A of the Banking Regulation Act, 1949, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby, amends the instructions issued vide circular DBR.RRB.BC.No.59/31.01.001/2015-16 dated November 19, 2015 on ‘Internet Banking Facility for Customers of Regional Rural Banks’.

Keeping in view the need to promote the spread of digital banking for customers in rural areas, the eligibility criteria applicable to Regional Rural Banks for offering Internet Banking with transactional facility to their customers have been revised, the details of which are enclosed in the Annex.

2. Commencement

The circular comes into force from November 01, 2022.

3. Applicability

This circular is applicable to all Regional Rural Banks (RRBs).

(Prakash Baliarsingh)
Chief General Manager

Annex

Eligibility Criteria for offering Internet Banking Facility by Regional Rural Banks, 2022

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

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

2. Compliance with minimum prescribed CRAR requirement as applicable from time to time.

3. Net worth of ₹50 crore or more as on March 31 of the previous financial year.

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

5. Net profit in the two immediately preceding financial years.

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

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

8. The bank shall have a sound internal control system approved by a CISA qualified independent auditor.

2. For extending internet banking services with transactional facility, RRBs fulfilling the above-mentioned criteria and other conditions prescribed in the circular dated November 19, 2015 on ‘Internet Banking Facility for Customers of Regional Rural Banks’, shall submit an application to the concerned Regional Office of RBI through NABARD as prescribed in the aforementioned circular.