What changed
RBI issued a new circular on November 1, 2022, amending the 2015 guidelines on internet banking for RRBs. The revised eligibility criteria now include specific thresholds: net worth of ₹50 crore or more, net NPA not exceeding 5%, net profit in the two preceding financial years, and no CRR/SLR default in the last year. Additionally, RRBs must have a CISA-qualified auditor-approved internal control system and a clean regulatory compliance record with no monetary penalty in the last two years.
What it means for you
RRBs must meet stricter financial and operational benchmarks to offer transactional internet banking, promoting digital banking in rural areas while ensuring stability. Banks with higher NPAs or weak profitability will be excluded, potentially limiting digital access for some customers. Lenders need to strengthen their CBS, IPv6 migration, and internal audit processes to qualify.
What you must do
- Assess your RRB's eligibility against the new criteria: net worth, NPA, profitability, CRR/SLR compliance, and penalty record.
- Ensure full CBS implementation and IPv6 migration are completed before applying.
- Engage a CISA-qualified independent auditor to certify your internal control system.
- Submit application to the concerned RBI Regional Office through NABARD as per the 2015 circular.
Who it affects
All Regional Rural Banks (RRBs), NABARD, RBI Regional Offices, Customers of RRBs seeking internet banking
What is the net worth requirement for RRBs to offer internet banking?
RRBs must have a net worth of ₹50 crore or more as on March 31 of the previous financial year.
Can an RRB with net NPA above 5% offer transactional internet banking?
No, the revised criteria require net NPA of not more than 5% as on March 31 of the previous financial year.
How should an RRB apply for internet banking approval?
The RRB must submit an application to the concerned RBI Regional Office through NABARD, following the process in the November 19, 2015 circular.