Section 23 of Banking Regulation Act, 1949 – Master Circular on Branch Authorisation - RBI - Reserve Bank of India
Section 23 of Banking Regulation Act, 1949 – Master Circular on Branch Authorisation
RBI/2012-13/77 July 2, 2012 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.33/22.01.001/2011-12 dated July 1, 2011 consolidating instructions / guidelines issued to banks on Branch Authorisation till June 30, 2011. The Master Circular has been suitably updated by incorporating the instructions issued upto June 30, 2012. 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 24 of this Master Circular. Yours faithfully, (Sudha Damodar) 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. E. Structure1. Introduction 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 the Department of Banking Operations & Development, Reserve Bank of India, Central Office (DBOD, CO) 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, including a specialised branch, a satellite or mobile 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 authorisation of branches, 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, and 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 while processing branch authorisation requests:a) The RBI will, while considering applications for opening branches, give weightage to the nature and scope of banking facilities provided by banks to common persons, particularly in underbanked areas (districts), actual credit flow to the priority sector, pricing of products and overall efforts for promoting financial inclusion, including introduction of appropriate new products and the enhanced use of technology for delivery of banking services. b) Such an assessment will include the policy of the bank on minimum balance requirements and whether depositors have access to minimum banking or "no frills" banking services, commitment to basic banking activity, viz. acceptance of deposits and provision of credit and quality of customer service as, inter alia, evidenced by the number of complaints received and the redressal mechanism in place in the bank for the purpose. c) The need to induce enhanced competition in the banking sector at various locations. d) Regulatory comfort will also be relevant in this regard. This would encompass:
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. 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 the Regional Offices concerned of Reserve Bank of India for "licence" for opening branches. v) Domestic scheduled commercial banks (other than RRBs) are permitted to open branches, Administrative offices, Central Processing Centres (CPCs) and Service branches in Tier 2 to Tier 6 centres (with population upto 99,999 as per Census 2001 - details of classification of centres tier-wise furnished in Annex 5) and in rural, semi-urban and urban centres in North Eastern States and Sikkim, and to open mobile branches in Tier 3 to Tier 6 centres (with population up to 49,999 as per Census 2001) and 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. Since the concept of mobile branches was mooted for rural areas, the general permission granted for operationalising mobile branches in Tier 3 to Tier 6 centres has not been extended to the operationalisation of mobile branches in Tier 2 centres. vi) Opening of branches/Administrative offices/Central Processing Centres (CPCs)/Service branches by domestic scheduled commercial banks (other than RRBs) in Tier 1 centres (centres with population of 1,00,000 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) Domestic Scheduled Commercial Banks, while preparing their Annual Branch Expansion Plan (ABEP), should allocate at least 25 percent of the total number of branches proposed to be opened during a year in unbanked rural (Tier 5 and Tier 6) centres. An unbanked rural centre would mean a rural (Tier 5 and Tier 6) centre that does not have a brick and mortar structure of any scheduled commercial bank for customer based banking transactions. viii) In view of the requirement for opening at least 25 per cent of the branches under ABEP in unbanked rural centres, it would now not be mandatory to open at least one third of the total number of branches proposed to be opened in Tier 2 to Tier 6 centres in underbanked districts of underbanked States. However, as there is a continuing need for opening more branches in underbanked districts of underbanked States for ensuring more uniform spatial distribution, banks would be provided incentive for opening such branches. Accordingly, for each branch proposed to be opened in Tier 2 to Tier 6 centres of underbanked districts of underbanked States, excluding such of the rural branches proposed to be opened in unbanked rural centres that may be located in the underbanked districts of underbanked States in compliance with the requirement as indicated in sub para vii) above, authorisation will be given for opening of a branch in a Tier 1 centre. This will be in addition to the authorisation given for branches in Tier 1 centres based on the considerations stated above. ix) Authorisation for opening branches in Tier 1 centres will not generally exceed the total number of branches proposed to be opened in Tier 2 to Tier 6 centres as well as in the rural, semi-urban and urban centres in the North-Eastern States and Sikkim. While issuing such authorisation, Reserve Bank will factor in whether at least 25 percent of the total number of branches to be opened during a year are proposed to be opened in unbanked rural centres. x) The number of branches, which would be authorized by the Reserve Bank based on applications for branches to be opened in Tier 1 centres, would also depend upon a critical assessment of the bank's performance in financial inclusion, priority sector lending, customer service, etc. xi) The general permissions referred to in paragraph 3 (v) above would be subject to regulatory/supervisory comfort in respect of the bank concerned and the Reserve Bank would have the option to withhold the general permissions now being granted, on a case-to-case basis, taking into account all relevant factors.
7. Opening of Specialised Branches Proposals for opening of Specialised Branches in Tier 1 centres may also be submitted along with the ABEP. 8. Setting up of Off-site/Mobile ATMs - General Permission
As indicated in paragraph 3(v) above, domestic scheduled commercial banks (other than RRBs) are permitted to open Mobile 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 (Annex 15). Mobile branch is extension of banking facilities through a well protected van with arrangements for two or three officials of the bank sitting in it with books, safe containing cash, etc. The mobile unit would visit the places proposed to be served by it on specific days/hours. The mobile branch should not visit villages/centres which are served by co-operative banks and places served by regular branch of commercial banks. The mobile branch should be stationed in each village/ location for a reasonable time on specified days and specified hours, so that its services could be utilized properly by customers. The business transacted at the mobile branch shall be recorded in the books of the base branch/data centre. The bank may give wide publicity about the mobile branch in the village, including details of "specified days and working hours" at various locations so as to avoid any confusion to local customers, and any change in this regard should also be publicized. In order to inform public/customers, arrangement should be made to display these details in the areas serviced by the mobile branch. 11. Opening of Satellite Offices Where the banks do not find it viable to open branches in rural areas, they may open Satellite Offices. The application for opening of the Satellite Office along with relative Board approval should included in the ABEP. The following guidelines may be followed by the banks for establishing Satellite Offices:
12. Opening of Extension Counters. i) Banks can open Extension Counters at the premises of the institutions of which they are the principal bankers after obtaining authorisation from Central Office, DBOD, Mumbai. for the purpose. Extension Counters can be opened within the premises of big offices/factories, hospitals, military units, educational institutions, etc. where there is a large complement of staff/workers, students, who because of their identical working hours and non-availability of banking facilities at a reasonable distance find it difficult to carry out their banking transactions. The Extension Counters should carry out limited type of banking business, such as,
ii) Further, if the extension counter proposes to undertake government business it would require prior approval of concerned Government authority as also of Department of Government & Bank Accounts, Reserve Bank of India, Central Office. iii) Extension Counters are not allowed to be opened at residential colonies, shopping complexes, market places and places of worship, etc. Banks desirous of setting up Extension Counters may approach DBOD CO with application in original (as given in Annex 16) complete in all respects, .along with certified copy of the approval by the competent authority. 13. Setting up of Central Processing Centres/Back Offices i) 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. Banks are permitted to open Central Processing Centres (CPCs)/Service branches in Tier 2 to Tier 6 centres as also in rural, semi-urban and urban centres in North Eastern States and Sikkim without prior permission from Reserve Bank of India in each case, subject to reporting as per the format enclosed (Annex 10).The proposals for opening of CPCs/Back Offices in centres where authorisation is required from the Reserve Bankmay be included in the ABEP. 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 23. 15. Business Facilitator/ Business Correspondent Model With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, scheduled commercial banks including Regional Rural Banks (RRBs) and Local Area Banks (LABs) 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. i) Guidelines for Engaging Business Facilitator Under the "Business Facilitator" model, banks may use the services of intermediaries such as:
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. ii) Guidelines for engaging Business Correspondents (BCs) The scheduled commercial banks including Regional Rural Banks (RRBs) and Local Area Banks (LABs) may engage Business Correspondents (BCs), subject to compliance with the following guidelines. Banks may formulate a policy for engaging Business Correspondents (BCs) with the approval of their Board of Directors. Due diligence may be carried out on the individuals/entities to be engaged as BCs prior to their engagement. The due diligence exercise may, inter alia, cover aspects such as (i) reputation/market standing, (ii) financial soundness, (iii) management and corporate governance, (iv) cash handling ability and (v) ability to implement technology solutions in rendering financial services. A. Eligible individuals/entities The banks may engage the following individuals/entities as BC.
B. BC Model While a BC can be a BC for more than one bank, at the point of customer interface, a retail outlet or a sub-agent of a BC shall represent the bank which has appointed the BC. However, it has now been decided to permit interoperability at the retail outlets or sub-agents of BCs (i.e. at the point of customer interface), provided the technology available with the bank, which has appointed the BC, supports interoperability, subject to the following conditions:
C. Procedure for engaging BCs The terms and conditions governing the contract between the bank and the BC should be carefully defined in written agreements and subjected to a thorough legal vetting. While drawing up agreements, banks should strictly adhere to instructions contained in the guidelines on managing risks and code of conduct in outsourcing of financial services by banks, issued by Reserve Bank of India on November 3, 2006. The banks will be fully responsible for the actions of the BCs and their retail outlets/sub agents. D. Scope of activities The activities to be undertaken by the BCs would be within the normal course of banking business. The scope of activities of a BC may include (i) identification of borrowers; (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) promoting, nurturing and monitoring of Self Help Groups/ Joint Liability Groups/Credit Groups/others; (vi) post-sanction monitoring; (vii) follow-up for recovery, (viii) disbursal of small value credit; (ix) recovery of principal/collection of interest; (x) collection of small value deposits; (xi) sale of micro insurance/ mutual fund products/ pension products/ other third party products and (xii) receipt and delivery of small value remittances/ other payment instruments. E. KYC Norms KYC and AML procedures, as laid down in the Master Circular DBOD. AML. BC. No.2 /14 .01.001/2011-12 dated July 1, 2011 and subsequent circulars on the subject should be followed in all cases. The banks may, if necessary, use the services of the BC for preliminary work relating to account opening formalities. However, ensuring compliance with KYC and AML norms under the BC model continues to be the responsibility of banks. F. Customer confidentiality The banks should ensure the preservation and protection of the security and confidentiality of customer information in the custody or possession of BC. G. Information Technology Standards The banks should ensure that equipment and technology used by the BC are of high standards. H. Distance Criterion With a view to ensuring adequate supervision over the operations and activities of the retail outlet/sub-agent of BCs by banks, every retail outlet/sub-agent of BC is required to be attached to and be under the oversight of a specific bank branch designated as the base branch. The distance between the place of business of a retail outlet/sub-agent of BC and the base branch should ordinarily not exceed 30 kms in rural, semi-urban and urban areas and 5 kms in metropolitan centers. In case there is a need to relax the distance criterion, the District Consultative Committee (DCC)/State level Bankers Committee (SLBC) could consider and approve relaxation on merits in respect of under-banked areas, etc. I. Ultra Small Branches For furthering financial inclusion, banks may establish outlets in rural centres from which BCs may operate. These BC outlets may be in the form of low cost simple brick and mortar structures. Every BC is under the oversight of a base branch. Accordingly, the base branch will have to provide oversight to the BC outlets which will include periodic visits by officers of the base branch to these outlets as well as to other places of functioning of BCs. With expanding access to banking services, it is also important that quality services are provided through the ICT based delivery model. Thus it would be necessary to have an intermediate brick and mortar structure (Ultra Small Branch) between the present base branch and BC locations so as to provide support to a cluster of BC units at a reasonable distance. These Ultra Small Branches may be set up between the base branch and BC locations so as to provide support to about 8-10 BC Units at a reasonable distance of 3-4 kilometres. These could be either newly set up or by conversion of the BC outlets. Such Ultra Small Branches should have minimum infrastructure such as a Core Banking Solution (CBS) terminal linked to a pass book printer and a safe for cash retention for operating large customer transaction and would have to be managed full time by bank officers/ employees. It is expected that such an arrangement would lead to efficiency in cash management, documentation, redressal of customer grievances and close supervision of BC operations. These could be satellite offices (as envisaged in circular DBOD No. BL.BC. 72/C-168(64D)-87 dated December 14, 1987) or regular branches as the case may be. BCs can operate from such Ultra Small Branches as their association with the branch will increase their legitimacy and credibility in the area and give people increased confidence to use their services. However, banks should ensure that such an arrangement does not result in BCs limiting operations to serving customers at such branches only, if, due to geographical spread, such arrangements may lead to BC services not being easily available in the entire area of their operations. J. Payment of commission/fee The banks may pay reasonable commission/fee to the BC, the rate and quantum of which may be reviewed periodically. The agreement with the BC should specifically prohibit them from charging any fee to the customers directly for services rendered by them on behalf of the bank. Commission structure or incentive mechanism should be devised in a manner that mere increase in the number of clients served or the transaction volume does not drive the commission. The remuneration should combine fixed and variable parts dependent, inter-alia, on some indication or measure of customer satisfaction. Some part of the variable remuneration could be deferred or clawed back in case of deficiency of service. The banks (and not BCs) are permitted to collect reasonable service charges from the customers in a transparent manner. K. Transactions put through BCAs engagement of intermediaries such as Business Facilitators/ Correspondents involves significant reputational, legal and operational risks, due consideration should be given by banks to those risks. The banks should adopt technology-based solutions for managing the risk, besides increasing the outreach in a cost effective manner. The transactions should normally be put through ICT devices (handheld device/mobile phone) that are seamlessly integrated to the Core Banking Solution (CBS) of the bank. The transactions should be accounted for on a real time basis and the customers should receive immediate verification of their transactions through visuals (screen based) or other means (debit or credit slip). In formulating their schemes on BC, banks may, inter alia, be guided by the recommendations made in Chapter III of the Khan Group Report as also the outsourcing guidelines released by Reserve Bank of India on November 3, 2006 (available on RBI website: www.rbi.org.in). The arrangements with the BC shall specify:
L. Internal Control & Monitoring The banks should carry out a detailed review of the performance of various BCs engaged by them at least once in a year and they should monitor the activities of BCs through their Controlling Offices and also through various fora under Lead Bank Scheme i.e. (SLBC, DLCC, BLBC). The internal control mechanism in the bank should include visit to BCs and interface with customers at periodical intervals. M. Consumer Protection Measures The banks should take all measures to protect the interests of the customers. Some such safeguards are outlined below:
N. Redressal of Grievances Grievance Redressal Machinery should be constituted within the banks for redressing complaints about services rendered by the BCs and give wide publicity about it through electronic and print media. The name and contact number of designated Grievance Redressal Officer of the bank should also be made known and widely publicized. The designated officer should ensure that genuine grievances of customers are redressed promptly. The grievance redressal procedure of the bank and the time frame fixed for responding to the complaints should be placed on the bank's website. If a complainant does not get satisfactory response from the bank within 60 days from the date of his lodging the compliant, he will have the option to approach the Office of the Banking Ombudsman concerned for redressal of his grievance/s. O. Customer Education Financial literacy and customer education should form an important part of the business strategy and should form part of the commitment by banks adopting the BC model. Banks may scale up their efforts substantially towards educating their clientele in their respective vernacular languages regarding the benefits of banking habit. Information regarding BCs engaged by banks may be placed on the respective banks' websites. The Annual Report of the banks should also include the progress in respect of extending banking services through the BC model and the initiatives taken by banks in this regard. The banks may also use print and electronic media (including in the vernacular language) to give wide publicity about implementation of the BC model by them. Banks are permitted to prepare schemes for offering Doorstep Banking facilities to their customers (including individuals, Corporate, PSUs, Government Departments, etc.), with the approval of their Boards in accordance with the guidelines issued by Reserve Bank of India from time to time.
ii) 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 ABEP for our approval. a) Within the block
b) Outside the Block 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 ABEP and the same will be considered based on the following parameters:
iv) Metropolitan, Urban and Semi Urban Branches
As such, these cases should not be included in the ABEP for approval from the Reserve Bank. Banks will have to approach Reserve Bank of India, Central Office, DBOD, Branch Licensing Division (BLD) for domestic banks and 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) 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 Department of Banking Supervision (DBS, RO), Reserve Bank of India/ Department of Banking Operations and Development, Central Office (DBOD, CO) Reserve Bank of India, (in respect of branches in Maharashtra and 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 ABEP for our approval. ii) 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 ABEP for our approval. However, it may be ensured that details thereof are advised to Regional Office concerned of DBS, Reserve Bank of India/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 the licence/authorization would be required. iii) Upgradation of Extension Counters and Satellite Offices into Full-fledged Branches
iv) 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 ABEP after obtaining the approval from the District Consultative Committee (DCC) for our consideration.
ii) 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. iii) 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 ABEP for our approval.
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 ABEP after obtaining approval of District Consultative Committee (DCC). Details of such proposals are required to be furnished to us for Reserve Bank of India approval as per proforma given in Annex 9. iii) Metropolitan, Urban and Semi Urban Branches Banks are permitted to close any branch in metropolitan, urban and semi-urban centres (not assigned any responsibility under Government sponsored programme) centres without seeking prior approval from RBI. As such, these proposals should not be included in the ABEP for our approval.
22. Population Group-wise Classification of Centres
23. Reporting to Reserve Bank of India i) Reporting to Regional Offices/DBOD, CO Banks should report details of opening of a new place of business including Mobile branch/Mobile ATMs, 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 to the Regional Office concerned of DBSDBS, 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 Regional Office concerned of DBS, Reserve Bank of India/ DBOD, CO (in respect of call centres in Maharashtra & Goa). ii) 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, Reserve Bank of India, Central Office, C-8/9, Bandra Kurla Complex, Mumbai-400 051 and Reserve Bank of India, Department of Banking Supervision, of the Regional Office concerned/Department of Banking Operations and Development, Central Office(in respect of centres in Maharashtra & Goa). Further, information in respect of change in status of Authorised Dealer (AD) branches should be submitted on an ongoing basis. A 'Nil' statement must be submitted in case there is nothing to report. iii) Banks should report operationalisation of Mobile Branches/Offices and Mobile ATMs in the Proformae III & IV (Annex 14). The general permission granted to domestic scheduled commercial banks vide paragraph 3 (v) above will not be applicable to foreign banks. i) The Branch Authorisation Policy (paragraph 3 of this circular except 3(v)) would be applicable to foreign banks, subject to the following : ii) Foreign banks are required to bring an assigned capital of US$25 million upfront at the time of opening the first branch in India. iii) Existing foreign banks having only one branch would have to comply with the above requirement before their request for opening of second branch is considered. iv) Foreign banks will be required to submit their branch expansion plan on an annual basis. v) In addition to the parameters laid down for Indian banks, the following parameters would also be considered :
Accordingly, foreign banks should submit their ABEP to the DBOD, International Banking Division, Central Office, Central Office Building (12th Floor), Shahid Bhagat Singh Marg, Mumbai - 400 001. Name of the bank :- Proposals for shifting of branches from one centre to another centre
# copy of minutes of the DLCC/DCC approval, specifically mentioning reasons for shifting of the branch, should be enclosed. Name of the bank : - Proposals for merger of branches
DCC approval is also required to be obtained for semi urban branches assigned responsibility under Government sponsored programme # copy of minutes of the DLCC/DCC approval, specifically mentioning reasons for merger of the branch, should be enclosed. Name of the bank :- Proposals for closure of branches
# copy of minutes of the DLCC/DCC approval, specifically mentioning reasons for closure of the branch, should be enclosed. Reporting format for opening of branches under general permission in Tier 2 to Tier 6 centres in terms of circular DBOD.No.BL.BC.65/22.01.001/2009-10 dated December 1, 2009 and DBOD.No.BL.BC. 60/22.01.001/2011-12 dated November 29, 2011
Reporting format for operationalisation of Off-site ATMs by banks
Conditions subject to which Off-site ATMs can be operationalised by banks
Facilities which can be provided through ATMs
A. Statement of operationalisation of mobile branches/offices to be submitted by banks to RBI as and when effected.
B. Statement of operationalisation of mobile ATMs to be submitted by banks to RBI as and when effected.
List of Circulars consolidated by the Master Circular
|
Share this page:
Install the RBI mobile application and get quick access to the latest news!
