Section 23 of Banking Regulation Act, 1949 - Master Circular on Branch Authorisation - ఆర్బిఐ - Reserve Bank of India
Section 23 of Banking Regulation Act, 1949 - Master Circular on Branch Authorisation
RBI/2010-11/58 July 1, 2010 All Commercial Banks Dear Sir, Section 23 of Banking Regulation Act, 1949 – Master Circular on Branch Authorisation Please refer to the Master Circular DBOD.No. BL.BC.20/22.01.001/2009-10 dated July 1, 2009 consolidating instructions/ guidelines issued to banks on Branch Authorisation till June 30, 2009. The Master Circular has been suitably updated by incorporating the instructions issued upto June 30, 2010. A copy of the updated Master Circular is enclosed. The Master Circular has also been placed on the RBI website (http://www.rbi.org.in). 2. Foreign banks may be guided by paragraph 20 of this Master Circular. Yours faithfully, ( A.K. Khound) Encls. : as above Master Circular on Branch Authorisation To provide a framework of rules /regulations/procedures to be followed by banks while opening/shifting/closing branches in India in accordance with provisions of Section 23 of the Banking Regulation Act, 1949. A statutory guideline issued by Reserve Bank of India. C.Previous guidelines consolidated The Master Circular updates the instructions contained in the circulars listed in the Appendix. To all commercial banks (other than RRBs) including Local Area Banks. Structure
Annex – 1 - FORM VI (Form of application for permission to open a new place of business) The opening of new branches and shifting of existing branches of banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot, without the prior approval of the Reserve Bank of India (RBI), open a new place of business in India or abroad or change, otherwise than within the same city, town or village, the location of the existing place of business. Section 23 (2) of the Banking Regulation Act lays down that before granting any permission under this section, the Reserve Bank may require to be satisfied, by an inspection under Section 35 or otherwise, as to the financial condition and history of the banking company, the general character of its management, the adequacy of its capital structure and earning prospects and that public interest will be served by the opening or, as the case may be, change of location of the existing place of business. Commercial banks (other than RRBs) including Local Area Banks should approach Department of Banking Operations & Development, Central Office in this regard. The policy for authorisation of branches in India is summarized in the following paragraphs. For the purpose of branch authorisation policy, a “branch” would include a full-fledged branch, a satellite office, an Extension Counter, an off-site ATM (Automated Teller Machine), administrative office, controlling office, service branch (back office or processing centre) and credit card centre. A call centre will not be treated as a branch. A call centre is one where only accounts or product information is provided to the customer through tele-banking facility and no banking transaction is undertaken through such centres. Also, no direct interface with clients/ customers is permitted at call centres. 3. Branch Authorisation Policy (i) With the objective of liberalising and rationalising the branch authorisation policy, a framework for a branch authorisation policy which would be consistent with the medium term corporate strategy of banks and public interest has been put in place. In addition to the requirement relating to the financial condition and history of the banking company, the general character of its management, the adequacy of its capital structure and earning prospects, the branch authorisation policy framework would have the elements enumerated in the following paragraphs. (ii) As regards the public interest dimensions of the policy framework, the following aspects would be kept in view in processing the authorisation requests:
(iii) As regards the procedural aspects, the existing system of granting authorisations for opening individual branches from time to time has been replaced by a system of giving aggregated approvals, on an annual basis, through a consultative and interactive process. Banks' branch expansion strategies and plans over the medium term would be discussed by the RBI with individual banks. The medium term framework and the specific proposals would cover the opening, closing, shifting, merger and conversion of all categories of branches. (iv) In terms of the existing branch authorisation policy, banks will not be required to approach Regional Offices of Reserve Bank of India for “licence” for opening branches. (v) Domestic scheduled commercial banks (other than RRBs) are permitted to open branches in Tier 3 to Tier 6 centres (with population upto 49,999 as per Census 2001 – details of classification of centres tier-wise furnished in Annex 5) without permission from Reserve Bank of India in each case, subject to reporting. Domestic scheduled commercial banks (other than RRBs) are also permitted to open branches in rural, semi-urban and urban centres in North Eastern States and Sikkim without permission from Reserve Bank of India in each case, subject to reporting. (vi) Opening of branches by domestic scheduled commercial banks (other than RRBs) in Tier 1 and Tier 2 centres (centres with population of 50,000 and above as per 2001 Census) will continue to require prior permission of the Reserve Bank of India, except in the case of North Eastern States and Sikkim where the general permission would cover semi-urban and urban centres also. (vii) The number of branches which would be authorized by the Reserve Bank of India based on such applications would depend, inter alia, upon various aspects, including a requirement that banks may plan their annual branch expansion in such a manner, that at least one-third of total number of branches opened in a financial year in Tier 3 to Tier 6 centres are in underbanked districts of underbanked States (as per Annex 6), as also upon a critical assessment of the bank’s performance in financial inclusion, priority sector lending, customer service etc. (viii) The general permissions referred to at para 3 (v) above would be subject to regulatory/supervisory comfort in respect of the bank concerned and RBI would have the option to withhold the general permissions now being granted, on a case-to-case basis, taking into account all relevant factors. 4.1 Based on the medium term strategy and considerations outlined in paragraph 3 above, banks should submit, on an annual basis, detailed proposals for opening new branches at specific centres, for which prior permission is required from RBI, in the prescribed Form VI in terms of Rule 12 of the Banking Regulation (Companies Rules), 1949, to the Department of Banking Operations and Development, Central Office, Reserve Bank of India, Mumbai for approval. The Proforma of Form VI is enclosed in Annex 1. The summary of branches proposed to be opened may be submitted as per proforma in bilingual format in Annex 2. Along with this, information sought in Annex 3 (A, B, C & D) should also be furnished. The Form VI is not required to be submitted in respect of Administrative Offices/ Controlling Offices, Credit Card Centres and Back Offices/ Processing Centres. 4.2 Banks are free to submit their annual branch expansion plan any time during the year. It is not linked either to the financial year or calendar year. The annual branch expansion plan should include specific proposals for opening, closing, shifting, merger and conversion of branches where prior permission of RBI is required in terms of the extant instructions. The annual branch expansion plan will be discussed with the bank, normally, within four weeks from its submission and approvals thereof will be communicated thereafter. 4.3 Notwithstanding the above, banks may approach RBI for any urgent proposals regarding opening of branches, especially in under banked areas(districts) anytime during the year, in addition to the authorizations granted under the annual plan, which would be considered on merit. 4.4 The Annual Branch Expansion Plan (ABEP) and any other proposals required to be submitted to RBI in this regard should have approval of Board of Directors of the Bank or such other authority to which powers have been delegated by the Board of the bank. 5.1 The validity of the authorisation granted would be one year from the date of the issue of the letter of authorisation/ permission. 5.2 Generally, no extension in validity period of the authorisation would be allowed. However, in case a bank is unable to open a particular branch due to genuine reasons during the validity period of one year, they may approach the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa), before expiry of validity period of authorisation for extension of time for a further period not exceeding one year. 5.3 At centres where a bank fails to open a branch within the validity period of the authorisation i.e. one year (or within the extended time of another year, as the case may be), the permission granted would automatically lapse and if a bank is still interested in opening the branch at that centre, they should include the same in their Annual Branch Expansion Plan. 6.1 As indicated in paragraph 3(v) above, domestic scheduled commercial banks (other than RRBs) are permitted to open branches in Tier 3 to Tier 6 centres, as also in rural, semi-urban and urban centres in North Eastern States and Sikkim without permission from Reserve Bank of India in each case, subject to reporting as per the format enclosed 6.2 Banks may include all proposals for opening of branches in such centres where permission from RBI is required, in the annual branch expansion plan. Further, banks are encouraged to open branches in underbanked districts and rural centres. In order to facilitate banks to identify centres in underbanked districts, a list of such districts is given in Annex 4. Similarly a list of underbanked districts of underbanked States, is given in Annex 6. 6.3 In order to ensure even spread of banking in the underbanked districts, it has been decided that proposals submitted by banks for opening of branches in underbanked districts would be considered provided that the location of the proposed branch is not: (a) within the municipal limits of State Capital, a Metropolitan Centre or a District Headquarters and However, the above restrictions at (a) and (b) will not be applicable in cases where the location of the proposed branch is in the State of Jammu & Kashmir or any of the 7 North Eastern States viz., Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland,Tripura and Sikkim. Notwithstanding the provisions as indicated above, RBI would consider, proposals from banks for opening branches at centres located within underbanked districts which fall within the category of (a) and (b) above, on a case-by-case basis, provided the bank is able to satisfy RBI that the location of the proposed branch is really underbanked. 6.4 Further, new private sector banks are required to ensure that at least 25% of their total branches are in semi-urban and rural centres on an ongoing basis. 7 Setting up of Off-site ATMs – General Permission Scheduled Commercial Banks are permitted to install Off-site ATMs at centres/places identified by them, without permission from the Reserve Bank. 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 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 11). The conditions subject to which Off-site ATMs can be operationalised by banks and the facilities which can be provided by banks through ATMs have been furnished in Annex 12 and Annex 13 of this circular. (ii) Banks are advised to take necessary steps to provide all existing ATMs / future ATMs with ramps so that wheel chair users / persons with disabilities can easily access them and also make arrangements in such a way that the height of the ATM does not create an impediment in its use by a wheelchair user. Banks may also take appropriate steps including providing ramps at the entrance of the bank branches so that the persons with disabilities / wheel chair users can enter the bank branches and conduct business without much difficulty. (iii) Further, banks should make at least one third of new ATMs installed as talking ATMs with Braille keypads and place them strategically in consultation with other banks to ensure that at least one talking ATM with Braille keypad is generally available in each locality for catering to needs of visually impaired persons. Banks may also bring the locations of such talking ATMs to the notice of their visually impaired customers. 8.1 While finalising the centre/ place for opening of a branch, banks should make proper assessment, keeping in view the business potential for opening of the branch thereat. Normally substitution of centres would not be allowed. However, under exceptional circumstances, if banks are unable to open branch at the proposed centre due to genuine problem, banks should approach DBOD, CO alongwith reasons thereof, once in a year. The bank should submit Form VI in respect of the new centre. All such requests will be examined on a case-to-case basis. 8.2 Substitution of centres would be allowed to centres of a similar population group or to a lower population group provided banks undertake to open the branch within the period of validity of authorisation issued. Further, the substitution would not be allowed from a centre in underbanked district to a centre in other than underbanked district. 9. Setting up of Central Processing Centres/ Back offices Banks may also set up Central Processing Centres (CPCs)/ Back Offices exclusively to attend to back office functions such as data processing, verification and processing of documents, issuance of cheque books, demand drafts etc. on requests received from other branches and other functions incidental to banking business. These CPCs/ Back Offices should have no direct interface with customers. These CPCs/ Back Offices would be termed as Service Branches and would not be allowed to be converted into General Banking Branches. The proposals for these CPCs/ Back Offices may be included in the annual branch expansion plan. As no banking transaction is undertaken at a call centre, no permission is required for establishment of a “call centre” as defined in paragraph 2. However, details of opening, closure and shifting of call centres should be reported to RBI as provided in paragraph 19. 11. Business Facilitator/ Business Correspondent Model 11.1 With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, banks have been permitted to use the services of intermediaries in providing financial and banking services through the use of Business Facilitator/ Business Correspondent Model as per the guidelines issued in this regard. Under the "Business Facilitator" model, banks may use the services of intermediaries such as : i) NGOs / SHGs depending on the comfort level of the bank for providing facilitation services Such services may include (i) identification of borrowers and fitment of activities; (ii) collection and preliminary processing of loan applications including verification of primary information / data; (iii) creating awareness about savings and other products and education and advice on managing money and debt counselling; (iv) processing and submission of applications to banks; (v) promotion and nurturing Self Help Groups / Joint Liability Groups; (vi) post-sanction monitoring; (vii) monitoring and handholding of Self Help Groups / Joint Liability Groups / Credit Groups / others; and (viii) follow-up for recovery. 11.2 Under the "Business Correspondent" model, banks are permitted to use the services of:
as Business Correspondents. In case duly appointed BCs of banks desire to appoint sub-agents at the grass-root level to render the services of a BC, banks have to ensure that (i) the sub-agents of BCs fulfill all relevant criteria stipulated for BCs in terms of our extant guidelines and (ii) the distance criteria, as applicable, from the base branch should invariably be fulfilled in the case of all sub-agents. In addition to the activities listed under the "Business Facilitator" model, the scope of the activities to be undertaken by the Business Correspondents will include (i) disbursal of small value credit, (ii) recovery of principal / collection of interest (iii) collection of small value deposits (iv) sale of micro insurance / mutual fund products / pension products / other third party products and (v) receipt and delivery of small value remittances / other payment instruments. Banks have been permitted by Reserve Bank of India to formulate a scheme for using the entities listed above for the activities mentioned above. 11.3 As the entire objective of permitting banks to use the Business Facilitator/Business Correspondent model is to extend savings and loan facilities to the underprivileged and unbanked population, these models should not be utilized for collecting NRE/NRO/FCNR(B) deposits which are generally of a large value. 11.4 Banks should invariably offer pass book facility to all its savings bank account holders (individuals) including those whose accounts are opened through Business Facilitator/Business Correspondent model. In case the bank offers the facility of sending statement of account and the customer chooses to get statement of account, the banks must issue monthly statement. 11.5 With a view to ensuring the viability of the BC model, banks (and not BCs) are permitted to collect reasonable service charges from the customer, in a transparent manner under a Board-approved policy. 11.6 A copy of the Board-approved policy in this regard may be forwarded to us (The Chief General Manager-in-charge, Reserve Bank of India, Department of Banking operations and Development). 11.7 Banks should in particular ensure that there are no complaints from the customer about the charges being non-transparent / not reasonable. Any unfair practices adopted by banks in this regard would be viewed seriously by Reserve Bank of India. 11.8 As regards the North Eastern Region, where a local organization / association not falling under any of the forms of organizations listed in the Reserve Bank guidelines is proposed to be appointed by a bank as Business Correspondent after due diligence and is recommended by the DCC for being approved as Business Correspondent, the same would be considered by the Regional Office of the Reserve Bank for granting suitable exemption from the Reserve Bank guidelines for appointing such entities as BCs. 11.9 The maximum distance criteria (distance between the place of business of a BC and the base branch) for the operation of a Business Correspondent (BC) for rural, semi urban and urban areas is 30 kms and for metropolitan areas is 5 kms. However, if the need is felt to relax the distance criteria, the matter can be referred to the District Consultative Committee (DCC) of the District concerned for approval. Where such relaxations cover adjoining Districts, the matter may be cleared by the State Level Banker's Committee (SLBC), which shall also be the concerned forum for metropolitan areas. Banks are permitted to prepare schemes for offering Doorstep Banking facilities to their customers (including individuals, Corporate, PSUs, Government Department etc.), with the approval of their Boards, in accordance with the guidelines issued by Reserve Bank of India. (a) Shifting of branches should be part of the medium term corporate strategy of branch expansion. Accordingly, proposals requiring approval of RBI should be included in the annual branch expansion plan as per proforma in Annex 7. (b) Banks should, however, ensure that customers of the branch, which is being shifted, are informed well in time before actual shifting of the branch, so as to avoid inconvenience to them. (c) The details of shifting (i.e. new address, date of shifting etc.) should be reported to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) immediately after shifting the branch, and in any case not later than two weeks after the shifting. No amendment in licence would be required in such cases. (d) The shifting of branches should also meet the following minimum criteria: (i)The new centre is of the same or lower population group as the existing centre e.g. a branch at a rural centre can be shifted to another rural centre only; and (ii) A branch located in underbanked district can be shifted to another centre in an underbanked district only. 13.2 Shifting within the centre (city/ town/ village) Banks have been given freedom to shift a branch to any location within the centre (city/ town / village) without seeking prior approval from RBI. As such, these cases should not be included in the annual branch expansion plan for our approval. As a matter of policy, shifting of sole rural branch outside the centre / village is not permitted, as such shifting would render the centre unbanked. However, under exceptional/unforeseen circumstances (natural calamity, adverse law and order conditions etc.,) if the bank is proposing to shift any sole rural branch outside the centre, DCC approval should be obtained and proposal thereof should be included in the annual plan for our consideration. Banks are, however, free to shift their rural branches within the block, from centres which are served by more than one branch of a commercial bank, without obtaining prior approval of RBI. While considering shifting of branches, banks should keep in mind the role entrusted to these branches under the Government sponsored programmes. Requests for shifting of branches from centres, which are served by more than one commercial bank branch (excluding Regional Rural Bank branch) outside the block should be included in the annual branch expansion plan and the same will be considered based on the following parameters: (i) Branches being shifted are in existence for five years or more and are incurring losses consecutively for the last three years; 13.4 Metropolitan, Urban and Semi Urban branches (a)The banks may at their discretion shift their branches in metropolitan/urban/semi urban centres within the municipal revenue limit of that centre i.e. city/town without prior approval from RBI. (b) Banks may also shift their branches in metropolitan/urban/semi-urban centres within the same State (except single semi-urban branches as such shifting would render the semi-urban centre unbanked) subject to the minimum criteria stated in para 13. 1 (d) – (i) & (ii) above. As such, these cases should not be included in the annual branch expansion plan for our approval. 13.5 Part-shifting of branches Banks will have to approach RBI(DBOD, Central Office, BL Division for domestic banks and DBOD, Central Office, International Banking Division (IBD) for foreign banks) for approval for shifting of some activities/ part-shifting of the branch. Part shifting of the branches will be considered by RBI on a case-to-case basis subject to the following norms: (i) No part shifting would be considered within three years of opening of a branch. 14.1 Conversion of Specialised branch Banks may convert a specialized branch into another category of specialized branch or a general banking branch at their discretion. However, it may be ensured that details thereof are advised to the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa) immediately after the conversion of the branch, and in any case not later than two weeks after conversion. No amendment to licence/ authorization would be required. Such cases should not be included in the annual branch expansion plan for our approval. 14.2 Conversion of general banking branches to any type of specialized branch Banks are free to convert their general banking branches into Specialised branches subject to the condition that the bank should continue to serve the existing customers of the general banking branches, which are being converted into specialized branches. Such cases should not be included in the annual branch expansion plan for our approval. However, it may be ensured that details thereof are advised to the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa) immediately after the conversion of the branch, and in any case not later than two weeks after conversion. No amendment to licence/ authorization would be required. 14.3 Upgradation of Extension Counters and Satellite Offices into full – fledged branches (i) Banks are free to convert their existing Extension Counters (ECs) and Satellite Offices (SO) into full-fledged branches at their discretion and relocate them within that centre. However, banks should surrender the licences (if separate licence has been issued) of Extension Counters/ Satellite Office and obtain a permission letter for full-fledged branch before effecting upgradation, from the Regional Office concerned of RBI/ DBOD CO(in respect of ECs in Maharashtra & Goa). Such cases should not be included in the annual branch expansion plan for our approval. (ii) In cases where banks desire to upgrade their existing Extension Counters and Satellite Offices into full-fledged branches and relocate the same to another centre, such proposals should be submitted to RBI (DBOD CO) for approval. 14.4 Conversion of Rural branch into Satellite Office Conversion of a rural branch into satellite office is generally not favoured. However, in exceptional circumstances, such proposals may be considered. The proposals for conversion of rural branches into satellite offices should be submitted along with the annual branch expansion plan after obtaining the approval from the District Consultative Committee (DCC) for our consideration. (a) Banks should, ensure that customers of the branch, which is being merged (transferor branch) are informed well in time before actual merging of the branch so as to avoid inconvenience to them. (b) The details of merger (date of merger etc.) should be reported to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) immediately after merger of the branch, and in any case not later than two weeks after merger. (c) After merger the licence (if separate licence has been issued) of the merged branch (transferor branch) should be surrendered to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) for cancellation. Where a consolidated authorization has been issued for more than one branch, it would suffice, if the bank reports the merger of the particular branch (clearly mentioning the Sl.No. of the Annex to the letter of authorisation issued in respect of the branch) to the Regional Office concerned of RBI/DBOD, CO (in respect of branches in Maharashtra and Goa). 15.2 Merger of Sole Rural/ Semi Urban Branch As a matter of policy, merger of a sole rural branch / semi-urban branch is not permitted, as merging the same with a branch outside the centre would render the centre unbanked. However, under exceptional/ unforeseen circumstances (natural calamity, adverse law and order condition etc.,), if the bank is compelled to merge any sole rural/ semi urban branch, DCC approval should be obtained and proposal thereof should be included in the annual plan for our consideration. Details of such proposals for rural and semi urban branches are required to be furnished to us for our approval as per proforma in Annex 8. 15.3 Merger of Metropolitan, Urban and Semi Urban branches Banks may merge one branch with another branch at Metropolitan, Urban and Semi-urban centres (not assigned any responsibility under Government sponsored programme), without seeking prior approval from RBI. As such, these proposals should not be included in the annual branch expansion plan for our approval. (a) Banks should, ensure that customers of the branch, which is being closed, are informed well in time before actual closure of the branch, so as to avoid inconvenience to them. (b) The details of closure (i.e. date of closure etc.) should be reported to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) immediately after closure of the branch, and in any case not later than two weeks after closure. (c) After closure, the licence/authorisation (if a separate licence/authorisation has been issued for a single branch)of the branch should be surrendered to the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa) for cancellation. Where a consolidated authorization has been issued for more than one branch, it would suffice if the bank reports the closure of the particular branch (clearly mentioning the Sl.No. of the Annex to the letter of authorisation issued in respect of the branch) to the Regional Office concerned of RBI/DBOD, CO (in respect of branches in Maharashtra and Goa). 16.2 Closure of Rural branches As a matter of policy, closure of even loss making branches at rural centres having a single commercial bank branch (excluding Regional Rural Bank branch) is not permitted, as closure would render the centre unbanked. The proposal for closure of a rural branch at a centre served by more than one commercial bank branch should be included in the annual branch expansion plan after obtaining approval of District Consultative Committee (DCC). Details of such proposals are required to be furnished to us for our approval as per proforma in Annex 9. 16.3 Metropolitan, Urban and Semi Urban branches Banks are permitted to close any branch in metropolitan, urban and semi-urban (not assigned responsibility under Government sponsored programme) centres without seeking prior approval from RBI. As such, these proposals should not be included in the annual branch expansion plan for our approval. (i) Banks have all powers relating to hiring of premises, rentals, deposits/advances to premises owners, for acquisition of accommodation on lease/rental basis for their own use (i.e., for Office and Residence of Staff). (ii) Banks, while acquiring premises for opening of a branch, should ensure that the location of the branch complies with the local norms/ laws of Municipal Corporation/ Nagarpalika/ Town area authority/VillagePanchayat or any other competent authority. (iii) Banks are required to forward a list of their branches/offices that are operating in premises in respect of which a dispute is pending with the landlord to the Regional Director Reserve Bank of India concerned (i.e., RD of the Regional Office of RBI under whose jurisdiction the branch/office in respect of which a dispute is pending is functioning) on a quarterly basis within a period of one month from the close of the respective quarter to which the report relates to. In respect of branches/offices situated in Maharashtra/Goa, the information will be furnished by banks to the Regional Director, Reserve Bank of India, Mumbai Office, Shahid Bhagat Singh Road, Mumbai – 400 001. 18. Population group-wise Classification of Centres (i) For the purpose of correct classification of a centre (city/ town/ village) i.e. rural, semi urban, urban or metropolitan, the bank should mention the correct name of the revenue centre and not just the locality. For this purpose, clarification can also be obtained from the Block Development Officer, Village Panchayat, Tehsildar/ Municipality or Municipal Corporation Office/ Office of the District Collector or District Census Authority. Further, banks may also ascertain the population group-wise classification of the centre from the Department of Statistics and Information Management (DSIM), Reserve Bank of India, Banking Statistics Division, C-8/9, Bandra-Kurla Complex, Mumbai-400 051, before approaching DBOD CO with their annual branch expansion plan proposals. (ii) In the event of change in population category of a centre on account of re-allocation/ reorganisation of villages / centres among districts or on account of amalgamation of towns/ villages/ areas, Head Offices/ Corporate Offices of the banks should approach Department of Statistics and Information Management (DISM), Reserve Bank of India, Banking Statistics Division, C-8/9, Bandra-Kurla Complex, Mumbai-400 051, regarding changes/reclassification of centre/place/district etc. along with all relevant documents (Gazette notification etc.) received from the State Government/Municipal Corporation/Nagarpalika/Town area authority/Village Panchayat or any other competent authority evidencing the changes. 19. Reporting to Reserve Bank of India (a) Reporting to Regional offices/ DBOD, CO Banks should report details of opening of a new place of business, closure, merger, shifting or conversion of any existing place of business immediately and in any case not later than two weeks after opening/closure/merger/shifting/conversion etc. to the Regional Office concerned of Reserve Bank of India, except in respect of branches in Maharashtra and Goa, which should be reported to DBOD, CO, Mumbai. The banks should also report the details of opening, closure and shifting of call centres to the Regional Office concerned of Reserve Bank of India / DBOD, CO (in respect of call centres in Maharashtra & Goa). (b) Branch Banking Statistics Banks should submit within fourteen days of every quarter, information relating to opening, closure, merger, shifting and conversion of branches in Proformae I & II (Annex 14) to Department of Statistics and Information Management (Banking Statistics Division) and the Regional Office concerned of RBI / DBOD, CO. Further, information in respect of Authorised Dealer (AD) branches should be submitted on an on going basis. A ‘Nil' statement must be submitted in case there is nothing to report. The general permission granted to domestic scheduled commercial banks vide paragraph 3 (v) will not be applicable to foreign banks. The Branch Authorisation Policy (paragraph 3 of this circular except 3(v)) would be applicable to foreign banks, subject to the following:
Accordingly, foreign banks should submit their annual branch expansion plan to the Department of Banking Operations and Development, International Banking Division, Central Office, Central Office Building(12th Floor), Shahid Bhagat Singh Marg, Mumbai – 400 001. List of Circulars consolidated by the Master Circular
|