What changed
RBI issued a circular on May 4, 2022, advising banks to keep ASBA-designated branches open on Sunday, May 8, 2022, specifically for LIC IPO application processing. This follows a government request to facilitate bidding. Banks must also adhere to customer service requirements from the July 1, 2015 Master Circular.
What it means for you
Banks must ensure ASBA branches are staffed and operational on a Sunday to handle LIC IPO applications, which may require additional planning for staffing and security. This is a one-time directive but underscores RBI's expectation of flexibility for large public offerings. Non-compliance could lead to regulatory scrutiny.
What you must do
- Consider opening all ASBA-designated branches on May 8, 2022, for public access during normal business hours.
- If opened, ensure adequate staffing, systems, and security arrangements are in place for smooth processing.
- Comply with para 7 of Master Circular DBR No. Leg. BC. 21/09.07.006/2015-16 on customer service.
- Communicate the Sunday opening schedule clearly to customers and staff in advance.
Who it affects
All scheduled commercial banks with ASBA-designated branches, Retail and institutional investors applying for LIC IPO, Branch operations and customer service teams
Why are ASBA branches required to open on Sunday?
The government requested banks to facilitate LIC IPO bidding, and RBI agreed, mandating ASBA branches to remain open on May 8, 2022, to process applications.
What customer service rules must banks follow?
Banks must comply with para 7 of the July 1, 2015 Master Circular on 'Customer Service in Banks', which covers aspects like queue management and timely processing.
Is this a permanent change for all IPOs?
No, this is a one-time directive for the LIC IPO only. Future IPOs may have similar arrangements if requested by the government.