RBI/2008-09/496
DBOD.No. BL.BC. 137 /22.01.001/2008-09

June 12, 2009
Jyeshtha 21,1931(Saka)

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir,

Section 23 of Banking Regulation Act, 1949 -
Relaxations in Branch Authorisation Policy - Off Site ATMs

In terms of the extant guidelines as contained in paragraph 1 of the Master Circular DBOD.No. BL.BC.21/22.01.001/2008-09 dated July 1, 2008, banks are required to obtain the prior approval of Reserve Bank of India before opening a new branch/office, including an Off-site ATM. Further, banks are required to include all such proposals for opening new branches/Off-site ATMs in their Annual Branch Expansion Plans.

2. In this connection, a reference is invited to paragraph 137 of the Annual Policy Statement 2009-10 (extracts enclosed – AnnexI) regarding setting up of Off-site ATMs by Scheduled Commercial Banks. Accordingly, Reserve Bank of India hereby permits Scheduled Commercial Banks to install Off-site ATMs at centres/places identified by them, without having the need to take permission from the Reserve Bank in each case. This would, however, be subject to any direction which the Reserve Bank may issue, including for closure/shifting of any such Off-site ATMs, wherever so considered necessary by the Reserve Bank. The banks should report full details of the Off-site ATMs installed by them in terms of the above general permission to the Regional Office concerned of Department of Banking Supervision/ DBOD, CO (in respect of Off-Site ATMs in Maharashtra and Goa) immediately after operationalisation and in any case not later than two weeks, as per the format enclosed (Annex II).

3. Banks may note that the above general permission to open Off-site ATMs is being granted to banks subject to the conditions given in Annex III . Further, the various facilities which banks can provide through their Off-site ATMs are listed in Annex IV.

4. Banks which have been providing the facility of cash deposit to the customers at their ATMs, should put in place adequate safeguards / procedures (like access through PIN / password etc), so as to ensure identification of depositor in case notes deposited are found to be forged / defective.

5. As indicated in paragraph 18 of the Master Circular on Branch Authorisation dated July 1, 2008 referred to above, the details of shifting/closure etc., of Off-site ATMs should also continue to be reported to the Regional Office concerned of Department of Banking Supervision/ DBOD, CO (in respect of Off -site ATMs in Maharashtra & Goa) immediately after such shifting/closure and in any case not later than two weeks.

6. Incidentally, as banks are aware, as per the extant instructions, permission of the Reserve Bank of India is not required for installation of On-site ATMs [ATMs which are located at the branches and Extension Counters (ECs) for which banks hold authorizations issued by the Reserve Bank under Section 23 of the Banking Regulation Act, 1949].

Yours faithfully,

(P. Vijaya Bhaskar)
Chief General Manager

Encl: as stated above