RBI To set Up Branch In Tripura

AGARTALA, Dec. 30: The RBI, the country’s apex banking regulator, will set up a branch office here soon for smooth co-ordination of banks in the public sector and to address other problems, including keeping a watch on illegal functioning of non-banking financial companies (NBFCs).

After Tripura, the RBI will set up branches in Nagaland, Manipur, Meghalaya, Mizoram and Arunachal Pradesh, Tripura finance minister Badal Chowdhury told reporters here today.

Chowdhury, who had met RBI governor D. Subbarao on Tuesday to discuss issues pertaining to the state, had drawn his notice to the low credit-deposit ratio maintained by nationalized banks and the lack of banking coverage in large areas of the state.

‘The RBI governor said the norms for setting up branches of nationalized banks had been relaxed for the Northeast recently. Now, no nationalized bank will require prior approval of the RBI for setting up new branches anywhere in the Northeast,’ Chowdhury said.

He said Subbarao expressed concern over nationalized banks in the Northeast providing services to people through business facilitators and business correspondents instead of setting up new branches. He told Chowdhury that he would have the matter investigated.

Chowdhury said the RBI governor promised to initiate drastic action against illegal money-collection and laundering by NBFCs in Tripura.

The RBI governor also assured Chowdhury that steps would be taken to ensure setting up of currency chests in all the nationalized bank branches in the Northeast and availability of small-denomination coins.

(Courtesy: Telegraph India)

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