RBI allows RRBs to open extension counters at places of worship

Mumbai: To help improve their business prospects, the Reserve Bank of India has allowed regional rural banks (RRBs) to open extension counters at places of worship and markets to provide wider access to customers.

The move, is come as part of efforts mooted by RBI to further liberalise the norms for RRBs in opening extension counters. The directive follows an earlier notification issued by the apex bank dated 2 July in this regard.

''''RBI''s permission for opening ECs will help RRBs to grow their deposit margins. While such counters can also be converted into branches at a later stage with the permission of RBI, these will also help a large chunk of common customers to avail the benefits of banking,'''' said a senior manager with a public sector bank while commenting on the development.

RRBs, who want to open extension counters, have to seek prior permission from the central bank. "However, RRBs shall be required to obtain necessary licence from the concerned regional office of RBI (RPCD)," RBI said in a communication.

Extension counters provide limited banking services such as deposit / withdrawal transactions, issuing and encashment of drafts and mail transfers, issue and encashment of travellers cheques, sale of gift cheques and collection of bills.