The Reserve Bank of India has directed bank boards to review the operations of business correspondents (BCs) at least once every six months with a view to ensuring that requirement of prefunding of corporate BCs and BC agents should progressively taper down with the passage of time. “Ideally, in all normal cases, the prefunding should progressively come down in such a manner so as to reach around 15% of the limits fixed for each BC in case of deposits and 30% in case of bank guarantees in, say, two years from the time a BC starts operations,” RBI said in a notification on Tuesday. The RBI also told banks to review the position of payment of remuneration of BCs and asked them to lay down a system of monitoring by the top management of the bank.
UCO Bank tightens vigilance norms
Public sector lender UCO Bank is tightening up its internal vigilance system and fast-tracking disciplinary action against employees. The bank on Tuesday launched its vigilance manual. “All these policies have been accepted by the board of directors. We are trying to become more transparent,” UCO Bank chief vigilance officer Hargovind Sachdev told reporters. The bank has already seen a decline in the number of vigilance complaints and is confident of bringing it down further, he said. “Last year, as many as 282 vigilance cases were registered. Now, there are 126 cases. We are confident that it will come down further,” said Sachdev.