What changed
RBI has forwarded copies of two notifications (No.183 dated September 5, 2011) issued by the Reserve Bank and notified in the Gazette of India on SGL and CSGL account eligibility and operational guidelines. The central bank explicitly states that the eligibility criteria for UCBs remain unchanged from previous circulars issued in November 2010 and April 2010.
What it means for you
Urban co-operative banks face no new compliance burden regarding SGL/CSGL accounts. The circular merely formalizes existing rules by attaching official gazette notifications. Banks should ensure their current practices align with the earlier circulars, as RBI expects continued adherence to those standards.
What you must do
- Review your bank's SGL and CSGL account opening procedures against the criteria in circulars dated November 16, 2010 and April 5, 2010.
- Acknowledge receipt of this circular to your respective Regional Office as instructed.
- Maintain documentation of the attached notifications for audit and compliance records.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance and treasury departments of UCBs
Are there any new eligibility requirements for UCBs to open SGL/CSGL accounts?
No. RBI explicitly states that the eligibility criteria remain the same as laid down in earlier circulars from November 2010 and April 2010.
What should we do with the attached gazette notifications?
Forward them to relevant departments for reference and ensure your bank's SGL/CSGL account operations comply with the existing guidelines.
Do we need to report anything to RBI after receiving this circular?
Yes, you must acknowledge receipt of this circular to your concerned Regional Office.