The Reserve Bank of India (RBI) has allowed all urban cooperative banks (UCBs) to act as PAN service agents.
Earlier, only financially sound and well-managed UCBs were allowed to act as PAN service agents. They were allowed to do so only after entering a tie-up with UTI Infrastructure and Technology Services Ltd (UTIITSL), NSDL e- Governance Infrastructure Ltd or with an agency authorised by Income Tax Department.
“With a view to expanding the scope of fee-based services offered by UCBs, it has now been decided to permit all UCBs to act as PAN Service Agent (PSA) by entering into a tie-up with any agency authorised by Income Tax Department,” the RBI said in a notification.
As per RBI rules, financially-sound UCBs should have a maintenance of a minimum CRAR (Capital to Risk-Weighted Assets Ratio) of 10 per cent on a continuous basis.
Their gross NPAs (non-performing assets) should be less than 7 per cent and net NPAs or bad loans should not exceed 3 per cent.
Also, there should not be any default in maintenance of CRR/SLR (cash reserve ratio/statutory liquidity ratio) during the preceding financial year; should have a continuous net profit for the last three years and sound internal control system with at least two professional directors on the board.
-PTI
