AP gets RBI licenses for all DCCBs
Hyderabad, Dec 8 (INN): Andhra Pradesh has become the first State in the country to obtain banking licenses in respect of all District Cooperative Central Banks (DCCBs) from Reserve Bank of India (RBI) to carry on banking business.
With Srikakulam DCCB obtaining banking license from RBI on Nov 30, 2011, all the DCCBs in the State have attained the status of licensed banks.
As the Andhra Pradesh State Cooperative Bank (APCOB) was issued license during February 2010 itself, the entire rural Cooperative banks network is operating on a licensed platform.
The Committee on Financial Sector Assessment under the Chairmanship of Dr. Rakesh Mohan had recommended that there was a need to draw a road map for ensuring that only licensed banks operate in the Cooperative space.
In pursuance of this recommendation Reserve Bank of India, in its annual policy statement of April 2009 indicated that all unlicensed cooperative banks should strive to achieve license on or before March 2012 and after that no unlicensed bank would be permitted to operate. RBI also liberalised licensing norms to facilitate the process.
In Andhra Pradesh, out of 22 DCCBs only three DCCBs were licensed at the time of announcement of RBI Annual Policy Statement for the year 2009-10. With meticulous planning and coordination between NABARD and Cooperative banks, 19 DCCBs in the state have obtained licenses four months ahead of the target date set by RBI.
While 5 DCCBs obtained licenses during 2009-10, as many as 08 DCCBs obtained licenses during 2010-11 and remaining 6 DCCBs obtained licenses in 2011-12.
News Posted: 8 December, 2011
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