No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/332 · issued 26 May 2008 · ~2 min read
Quick answerRBI has liberalized on-site ATM norms for UCBs. Well-managed UCBs in MoU states or multi-state ones (excluding Grade III/IV) can now set up on-site ATMs without prior RBI approval, removing the earlier Rs.100 crore deposit criterion.
What changed
Previously, UCBs needed prior RBI approval and had to meet eligibility norms including a minimum deposit of Rs.100 crore to open on-site ATMs. Now, UCBs registered in states with an MoU with RBI or under the Multi-State Cooperative Societies Act, 2002, and classified in Grades other than III and IV, can set up on-site ATMs without prior approval. The earlier deposit criterion has been dispensed with for these eligible banks.
What it means for you
This move reduces regulatory burden for financially sound UCBs, allowing faster ATM deployment at their branches. It encourages better customer service and digital access, especially in states cooperating with RBI. Banks must ensure they meet the grade and registration criteria to avail this benefit.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Verify your UCB's registration status (MoU state or multi-state) and current RBI grade classification.
Ensure your bank is not in Grade III or IV before proceeding with on-site ATM installation without approval.
Document compliance with the liberalized norms for internal audit and regulatory reference.
Update your board-approved ATM policy to reflect the new eligibility criteria.
Who it affects
Primary (Urban) Co-operative Banks (UCBs), UCBs registered in states with MoU with RBI, Multi-state UCBs under the Multi-State Cooperative Societies Act, 2002, UCBs classified in Grades other than III and IV
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 14:00 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which UCBs are eligible for this liberalized on-site ATM norm?
UCBs registered in states that have signed an MoU with RBI, or those registered under the Multi-State Cooperative Societies Act, 2002, and classified in Grades other than III and IV, are eligible.
Do eligible UCBs still need RBI approval for on-site ATMs?
No, eligible UCBs can set up on-site ATMs without prior RBI approval under this circular.
What was the earlier minimum deposit requirement for on-site ATMs?
Earlier, UCBs needed a minimum deposit of Rs.100 crore to open on-site ATMs. This requirement has been removed for eligible banks.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2239: UBD.PCB.Cir.No.46/09.69.000/07-08 — "Annual Policy Statement for the Year 2008-09 Installation of Automatic Teller Machines (ATMs) - UCBs" dated May 26, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/332
UBD.PCB.Cir.No. 46 /09.69.000/07-08
May 26, 2008
The Chief Executive Officers of
All Primary (Urban) Co-operative Banks
Dear Sir/Madam,
Annual Policy Statement for the year 2008-09
Installation of Automatic Teller Machines (ATMs) -UCBs.
Please refer to our circular UBD.PCB.BPD.Cir.No. 50/09.69.000/05-06 dated April 28, 2006 on the above subject.
2. As announced in the Annual Policy Statement for the year 2008-09 dated April 29, 2008 ( extract enclosed ), the eligibility norms for opening up of on-site ATMs have been liberalized . Accordingly, UCBs that are registered in states which have entered into MoU with RBI or are registered under the Multi-state Cooperative Societies Act, 2002 and classified in Grades other than Grade III and IV, may hereafter, set up on-site ATMs without prior approval of the Reserve Bank.
Yours faithfully,
(A.K Khound)
Chief General Manager-in-Charge
Annual Policy Statement for the Year 2008-09
Opening of On-site ATM By UCBs
210. At present, UCBs are allowed to open on-site ATMs subject to certain eligibility norms, including minimum deposit criterion of Rs.100 crore. With a view to liberalising this facility, it is proposed:
to dispense with the extant eligibility norms for opening on-site ATMs for well-managed and financially sound UCBs in the States that have signed MoUs with the Reserve Bank and those registered under the Multi-State Cooperative Societies Act, 2002.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/332 · issued 26 May 2008. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4194&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.