Question
The RBI notified that District Central Co-operative
Banks are allowed to close their unremunerative branches without prior permission of the central bank & should give _______ notice in advance to all existing depositors/ clients of the branch through press releases in local leading newspapers.Solution
The RBI notified that District Central Co-operative Banks are allowed to close their un-remunerative branches without prior permission of the central bank, though a nod will be needed from the Registrar of Cooperative Societies of the respective state. The bank should give two months notice in advance to all existing depositors/ clients of the branch through press release in local leading newspapers as well as communicate to each constituent of the branch, well in advance of the closure of the branch. Also, the District Central Co-operative Bank (DCCB) should return the original licence/s issued for the closed branch to the Regional Office concerned of the Reserve Bank. However, DCCBs will not be allowed to close branches if restrictions have been imposed on the bank by the RBI.
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