What changed
RBI issued a circular on June 24, 2014, mandating all UCBs to comply with SIT requests for information and documents. This follows a Supreme Court judgment from July 4, 2011, and the government's constitution of the SIT under Justice M.B. Shah.
What it means for you
UCBs must treat SIT requests as binding and ensure timely sharing of data without delay. Non-compliance could invite regulatory or legal action, as the directive stems from a Supreme Court order requiring full cooperation from all state agencies and bodies.
What you must do
- Designate a nodal officer to handle SIT information requests promptly.
- Review internal record-keeping systems to ensure quick retrieval of documents.
- Train staff on compliance procedures for responding to SIT queries.
- Maintain a log of all SIT requests and responses for audit purposes.
Who it affects
All Primary Urban Co-operative Banks (UCBs), Senior management and compliance teams of UCBs
What is the SIT and why does it need information from UCBs?
The Special Investigation Team (SIT) was constituted by the Government of India following a Supreme Court judgment to investigate certain matters. UCBs are required to share information as part of the SIT's mandate to ensure full cooperation from all state entities.
What happens if a UCB fails to provide information to the SIT?
The circular does not specify penalties, but the Supreme Court has directed all agencies to extend full cooperation. Non-compliance could lead to regulatory action by RBI or contempt of court proceedings.
Does this circular apply to all types of cooperative banks?
No, it specifically applies to Primary (Urban) Co-operative Banks (UCBs) as addressed in the circular.