RBI Licenses For All DCCBs

Andhra Pradesh is now the first state in the country to obtain banking licenses for all District Cooperative Central Banks (DCCBs), from the Reserve Bank of India (RBI), to carry on banking business.

With the Srikakulam DCCB having obtained its banking license from RBI on 30 Nov 2011, all the DCCBs in the state have attained the status of licensed banks.

Ever since the Andhra Pradesh State Cooperative Bank (APCOB) was issued its license during February 2010 itself, the entire network of rural cooperative banks has been operating on a licensed platform.

The Committee on Financial Sector Assessment, under the Chairmanship of Dr. Rakesh Mohan, had recommended that there is a need to draw a roadmap to ensure that only licensed banks operate in the cooperative space.

In pursuance of this recommendation, the RBI, in its annual policy statement of April 2009, indicated that all unlicensed cooperative banks should strive to achieve licenses on or before March 2012, after which no unlicensed bank would be permitted to operate.

The RBI also liberalised licensing norms, in order to facilitate the process.

In Andhra Pradesh, out of 22 DCCBs, only 3 DCCBs were licensed at the time of the announcement of the RBI Annual Policy Statement for the year 2009-10.

With planning and coordination between NABARD and cooperative banks, 19 DCCBs in the state have obtained licenses 4 months ahead of the target date set by RBI.

While 5 DCCBs obtained licenses during 2009-10, as many as 8 DCCBs obtained licenses during 2010-11, and the remaining 6 DCCBs obtained licenses in 2011-12. (INN)