Opening of Current Account and Subsidiary General Ledger Account with Reserve Bank and Membership of Indian Financial Network (INFINET) and Real Time Gross Settlement (RTGS) System
RBI/2010-11/277
UBD.BPD. (PCB).Cir. No.24/12.05.001/2010-11
November 16, 2010
The Chief Executive Officers of
All Urban Co-operative Banks
Dear Sir / Madam,
Opening of Current Account and Subsidiary General Ledger Account with Reserve Bank and Membership of Indian Financial Network (INFINET) and Real Time Gross Settlement (RTGS) System
In the Second Quarter Review of Monetary Policy of the Reserve Bank of India for the Year 2010-11, it was announced that Urban Co-operative Banks (UCBs) would be allowed current account and SGL account with the Reserve Bank as also membership of INFINET and RTGS. The relevant paragraph of the Review is reproduced below.
“Access to INFINET Membership, Current/SGL Accounts with the Reserve Bank and RTGS Membership for UCBs
97. In order to enable urban co-operative banks (UCBs) to serve their customers better, it is proposed :
• to allow all licensed UCBs (other than those under all inclusive directions) the facility of Indian Financial Network (INFINET) membership, current and Subsidiary General Ledger (SGL) accounts with the Reserve Bank; and
• to allow Real Time Gross settlement (RTGS) membership to only well managed and financially sound UCBs having a minimum net worth of Rs. 25 crore.”
2. Accordingly, it has been decided to permit all licensed UCBs, other than those under all inclusive Directions issued under Section 35A of the Banking Regulation Act, 1949 (AACS), to open Current Account and Subsidiary General Ledger (SGL) Account with the RBI. Such UCBs are also allowed to take up membership of the INFINET and RTGS. However, for RTGS membership, the UCBs apart from being financially sound and well managed are required to have a minimum net-worth of Rs. 25 crore.
3. Urban Co-operative Banks satisfying the prescribed eligibility criteria and desirous of availing of the above facilities may approach the Regional Director, Reserve Bank of India, Mumbai Office, Fort, Mumbai – 400 001.
Yours faithfully,
(A. Udgata)
Chief General Manager-in-Charge
CAclubindia
