Home › Circulars › RBI/2007-2008/86

UCBs must detail manpower, infra, risk systems for forex licence

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2007-2008/86 · issued 05 Jul 2007 · ~1 min read

Quick answerRBI now requires Primary Urban Co-operative Banks applying for an Authorised Dealer licence to submit additional details on skilled manpower, infrastructure, internal controls, and risk management systems beyond the earlier listed documents.

What changed

Previously, UCBs only needed to provide the documents listed in Annex II of the November 2006 circular. Now, they must also furnish specific information on availability of skilled manpower and infrastructure, the internal control/audit system, and risk management systems in place.

What it means for you

This tightens the entry bar for UCBs wanting to deal in foreign exchange. Banks must invest in building robust risk frameworks and skilled teams before applying. Lenders with weak internal controls or inadequate staffing will find it harder to get AD-I or AD-II licences.

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

Review your current manpower, infrastructure, internal audit, and risk management systems against RBI's expectations.
Prepare a detailed submission covering these four areas when applying for an Authorised Dealer licence.
Ensure your internal control and audit systems are documented and audited before filing the application.
Train or hire staff with foreign exchange expertise to meet the 'skilled manpower' requirement.

Who it affects

Primary (Urban) Co-operative Banks, UCBs applying for Authorised Dealer Category I or II licence, Compliance and risk management teams at UCBs

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 15:45 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 05 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What additional information must UCBs now submit for an AD licence?

Beyond the documents listed in Annex II of the November 2006 circular, UCBs must provide specific details on skilled manpower availability, infrastructure, internal control/audit systems, and risk management systems.

Does this circular apply to all UCBs or only new applicants?

It applies to all Primary Urban Co-operative Banks submitting an application for an Authorised Dealer licence, whether for Category I or II.

When did this requirement become effective?

The circular was issued on July 5, 2007, and the additional information requirement took effect from that date for all new AD licence applications.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #2371: UBD.PCB.Cir.No.4/16.12.000/07-08 — "Conduct of Foreign Exchange Business by UCBs" dated July 5, 2007”

📜 Read the original circular — full text as issued by RBI

RBI/2007-2008/86 
 UBD.PCB.Cir.No. 4/16.12.000/07-08
 July 5, 2007
 The Chief Executive Officers of 
 All Primary (Urban) Co-operative Banks
 Dear Sir/Madam,
 Conduct of Foreign Exchange Business by UCBs- 
 Please refer to our circular UBD.PCB. Cir.No. 21/16.12.000/06-07 dated   November 27, 2006 on the above subject, advising inter alia the eligibility criteria,  list of documents/ information to be furnished, etc for grant of Authorized Dealer category l and II licence. 
 2.  In this connection, it is advised that in addition to the documents/information listed in Annex II to the above cited circular, UCBs should furnish specific information on the availability of skilled manpower and infrastructure, the internal control /audit system and risk management systems put in place by them, while submitting their application for AD licence. 
 Yours faithfully,

 (S.S Barik)
 General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/86 · issued 05 Jul 2007. The plain-English explanation above is BankPulse’s own independent summary.

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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=3700&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.