The UCBs registered with SEBI as depository participants, using core banking solutions, and offering internet banking services would be qualified to open demat account for customers, the RBI announced in a notification.
As per the RBI announcement, given the high risks involved in such services, the scheduled primary urban cooperative banks with the prior approval of the apex bank alone would be able to provide online trading facility to their demat account holders.
Additionally, the UCBs should have a strong financial background and their assessed net worth should not be less than Rs. 500 crore, the notification said.
Earlier, the various banks, federations had urged the apex bank to allow the UCBs to open demat account.
