Reserve Bank of India has allowed strong regional rural banks to launch online transaction through internet banking, an essential product in new-age banking. Profitable RRBs with minimum Rs 100 crore net worth and better asset quality will be allowed to offer this service.

Background:-

• With a view to enhancing customer service and taking into account demand for such services, it has been decided to allow RRBs to extend the facility of internet banking to their customers.
• Banks with capital adequacy ratio over 10% will be allowed to introduce the online transaction services.
• They need to have their gross NPA ratio less than 7% and their net NPA should not exceed 3%.
• The bank should have made a net profit in the immediatepreceding financial year and overall, should have made net profit at least in three out of the preceding four financial years.
• Weak banks will be allowed to offer internet services (view only) without online transaction facilities.
• RRBs offering internet banking (view only) to customers should ensure that the facility is strictly for non-transactional services such as balance enquiry, account statement download or request for cheque books.

Try it…

Annual Meetings of International Monetary Fund (IMF) and World Bank held in Lima (______) during October 7 to 11, 2015. Finance Minister Arun Jaitely, RBI Governor Raghuram G Rajan and Chief Economic Adviser Arvind Subramanian were part of Indian Delegation ?