Government of Andhra Pradesh have issued orders stipulating the following criteria to banks/ financial institutions; in order to get notified for the purpose of placement of funds by the Government Departments, Government Corporations/ PSUs/ PF Funds etc:
i. The eligible banking institutions would all be Scheduled Banks (Public Sector and Private Sector) and Regional Rural Banks but exclude
Urban Cooperative Banks.
ii. Minimum Net Worth of the banks should be Rs.300 Crors.
iv. Bank should lend under Priority Sector as per the norms stipulated by RBI. The bank should also participate in the lending programms
sponsored by the Government as per the State Credit Plan/ Annual Credit Plan of the State Government.
v. The performance of the bank should, in general, be satisfactory particularly in the areas of NPA management business growth and net
2. Government have decided to relax the applicability of the criteria (ii) above that the notified bank/ financial institution should have Minimum Net worth of Rs.300 Crs; in respect of Regional Rural Banks (RRBs). This implies that Government Departments/ Corporations/ PSUs/ PF Funds etc; can keep funds/ maintain accounts with RRBs even if their net worth is less than Rs.300 Crs
-> Regional Rural Banks (RRBs) have been playing a crucial role in meeting the credit needs of rural areas and have become main tool for rural development.
-> RRBs are State owned, with equity participation by GOI (50%) State Govt (15%) and the sponsor bank (35%) which is a Public Sector Bank.
3. All the other conditions will remain unchanged. The above relaxation is applicable to the following Regional Rural Banks (RRBs) operating in the State Andhra Pradesh:
i. Andhra Pradesh Grameena Vikas Bank (APGVB)
ii. Andhra Pragathi Grameena Bank (APGB)
iii. Chaitanya Godavari Grameena Bank (CGB)
iv. Saptagiri Grameena Bank (SGB)
4. These orders will come into force with immediate effect.
Finance (IF) Department – Regulation of Deposits with Commercial Banks, Regional Rural Banks, Cooperative Banks and Financial Institutions: Revised Orders issued:
FINANCE (IF) DEPARTMENT
GO.Ms.No: 145 Dated: 26.06.2014.
GO.Ms.No.124, Finance (IF) Dept., dated 23.04.2009