RBI/2004-05/364
RPCD.CO.NB. BC.No. 78 /03.03.116/2004-05
February 17, 2005
Chairmen of all State Cooperative Banks / District
Central Cooperative Banks
Dear Sir,
Entry of State Cooperative Banks (SCBs) / District
Central Cooperative Banks into insurance business
A reference is invited to our circular RPCD.CO.NB.BC.No.59/03.03.116/
2004-05 dated November 18, 2004 allowing scheduled or licensed SCBs and
licensed DCCBs subject to their having a minimum net worth of Rs.100 crore
as per the latest NABARD Inspection Report and complying with certain other
norms to undertake insurance business as corporate agent without risk participation.
2. On a review it has been decided to allow
scheduled or licensed SCBs and licensed DCCBs having a minimum net worth [ real
or exchangeable value of paid up capital and reserves as defined under Section
11 of the Banking Regulation Act, 1949 (AACS)] of Rs.50 crore instead of Rs.100
crore as at present, to undertake insurance business as corporate agent without
risk participation. Other terms and conditions stated in our circular dated
November 18, 2004 referred to above would remain unchanged. We reiterate
that no SCB/DCCB should undertake insurance business without obtaining prior
permission of the Reserve Bank of India.
3. Please acknowledge receipt of the circular
to our Regional Offices.
Yours faithfully
(C.S.Murthy)
Chief General Manger-in-Charge
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