RBI allows urban cooperatives to open off-site ATMs

The Reserve Bank has allowed urban cooperative banks (UCBs) to open ATMs at places other than their branches without its prior approval.

"It has been decided to allow well-managed UCBs to set up off-site ATMs without seeking approval through the annual business plans," the central bank said in a notification.

For this such banks have to meet criteria like continuous net profit for the last three years and net non- performing assets should be under 5 per cent, it said.

Besides, the central bank said those UCBs which want to set up ATMs should also maintain minimum capital adequacy ratio of 10 per cent on a continuous basis with minimum owned funds commensurate with entry point capital norms for the centre where the off-site ATM is proposed. That apart, UCBs should not be defaulters in terms of maintenance of statutory policy reserves during the preceding financial year.
   
The annual monetary policy for 2010-11 unveiled last month said, well-managed UCBs were required to submit annual business plans, based on which centres were allotted to them according to their choice of opening of branches.
     
Centres where UCBs desire to open off-site ATMs are also required to be included in their annual business plan, the central bank had said in the monetary policy.