What changed
Previously, UCBs did not have access to INFINET membership, current/SGL accounts with RBI, or RTGS. Now, all licensed UCBs (excluding those under all-inclusive directions) can open current/SGL accounts and join INFINET. RTGS membership is limited to financially sound UCBs with a minimum net worth of Rs. 25 crore.
What it means for you
This move enables UCBs to improve customer service by accessing RBI's payment and settlement infrastructure. For lenders, it levels the playing field with commercial banks, but RTGS access remains conditional on financial strength. UCBs must meet the net worth threshold to offer real-time settlement services.
What you must do
- Check if your UCB is licensed and not under all-inclusive directions to qualify for current/SGL accounts and INFINET.
- Assess your UCB's net worth; if it is Rs. 25 crore or more, apply for RTGS membership.
- Submit applications to the Regional Director, RBI, Mumbai Office, Fort, Mumbai – 400 001.
- Ensure your UCB is well-managed and financially sound before seeking RTGS membership.
Who it affects
All licensed Urban Co-operative Banks (UCBs), UCBs under all-inclusive directions (excluded), UCBs with net worth of Rs. 25 crore or more (eligible for RTGS)
Which UCBs are eligible for current/SGL accounts and INFINET membership?
All licensed UCBs, except those under all-inclusive directions issued under Section 35A of the Banking Regulation Act, 1949 (AACS), are eligible.
What is the minimum net worth required for RTGS membership?
UCBs must have a minimum net worth of Rs. 25 crore and be financially sound and well-managed to qualify for RTGS membership.
Where should UCBs apply for these facilities?
Eligible UCBs should approach the Regional Director, Reserve Bank of India, Mumbai Office, Fort, Mumbai – 400 001.