RBI/2012-13/157
RPCD.CO.RRB.BL.BC.No.18 /03.05.90/2012-13

August 1, 2012

All Regional Rural Banks

Dear Sir,

Simplification of the Procedure for Branch Licensing

Please refer to our circular RPCD.CO.RRB.BL.BC.No.90/03.05.90-A/2011-12 dated June 13, 2006, liberalising and simplifying the procedure for opening, shifting or merger of branches.

2. As per extant general policy on branch licensing the applications for opening, shifting, merger or conversion of branches, have to be submitted by Regional Rural Banks (RRBs) to the respective Regional Office of NABARD with an advance copy to the concerned Regional Office of Reserve Bank of India. The Empowered Committee (EC) on RRBs constituted by the Reserve Bank at its Regional Offices deliberates and makes recommendations on such applications. The Reserve Bank takes into account the EC's recommendations and disposes off the applications.

3. In order to expedite the process of disposal of applications it has been decided to delegate powers to the Regional Offices of the Reserve Bank to take a decision on the applications of RRBs for opening, shifting, merger or conversion of branches without reference to the concerned Empowered Committees. RRBs may continue to submit applications to the concerned Regional Office of the Reserve Bank, through the respective Regional Office of NABARD which will give its comments on the merits of the application, with an advance copy being forwarded to the concerned Regional Office of the Reserve Bank. If required, the Regional Offices of the Reserve Bank may consult the concerned State Government. The approval of the sub-group of the District Consultative Committee (DCC) will be required, as hitherto, for shifting, merger and conversion of branches.

4. All other instructions remain unchanged.

5. Please acknowledge receipt to our respective Regional Office.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager