Ref. No. NB.IDD (Coop) / 354 / V-42 / 2018-19
11 June 2018
Circular No. 139 / IDD-02 / 2018
Chief Executive Officer / Managing Director
All StCBs / DCCBs
Engaging Village Level Dairy Cooperative Societies and other non-credit societies/ LAMPS as BCs for DCCBs and StCBs
Of late, we have been receiving requests from StCBs/ DCCBs with respect to engaging societies as BCs of StCBs/ DCCBs. The matter has been examined by RBI and StCBs/ DCCBs have been permitted to engage village level Dairy Cooperative Societies, LAMPs and other non-credit functional societies related to agriculture and allied sector to act as BCs of StCBs/ DCCBs subject to StCBs/ DCCBs satisfying the following eligibility criteria:
i. The bank should be licensed
ii. It has implemented Core Banking Solution (CBS)
iii. CRAR is not less than 9%.
iv. Gross NPA is less than 10%.
v. The bank should not have defaulted in maintenance of CRR/SLR during the immediate preceding financial year.
vi. The bank should have made net profit in the immediate preceding financial year.
2. The instructions contained in the circular may be brought to the notice of all concerned.
Chief General Manager