RBI/2009-2010/306
RPCD.CO. RRB. No. BC. 54/ 03.05.90-A / 2009-10

February  5, 2010

The Chairman
All Regional Rural Banks

Dear Sir,

Section 23 of the Banking Regulation Act, 1949 - Master Circular on Branch Licensing - Regional Rural Banks (RRBs)- Policy for opening of Regional Offices by RRBs

Please refer to paragraph 2.3 of our Master Circular  RPCD. CO. RRB. No. BL. BC.8/03.05.90-A/2009-10 (RBI/2009-10/41) dated July 1, 2009 in terms of which amalgamated RRBs having 75 or more branches will be allowed to open one Regional Office (RO) for every 50 branches, and RRBs, which had not undergone amalgamation (stand alone) and having 50 or more branches, are allowed to open one RO for every 25 branches.

2. The position has been reviewed and it has been decided as under:

(i) The distinction between amalgamated and stand alone RRBs in regard to opening of ROs is done away with, and accordingly, all RRBs (both amalgamated and stand alone) will be allowed to open one RO for every 50 branches. RRBs having up to 50 branches will be under the direct control of Head Office, without any intermediate tier.

(ii) The cases of RRBs, which require relaxation in the above norms in regard to the number of branches to be covered by one RO due to geographical/ other conditions, will be examined by  State Level Empowered Committee of the Reserve Bank of India and referred to this Department with its comments for consideration.

3. The aforesaid instructions come into effect immediately.

4. Please acknowledge receipt of this letter to our Regional Office concerned.

Yours faithfully,

(R.C.Sarangi)
Chief General Manager