RBI/2018-19/194
DBR.RRB.BL.BC.No.40/31.01.002/2018-19
May
31, 2019
The Chairman
All Regional Rural Banks
Madam/Dear Sir,
Rationalisation of Branch
Authorisation Policy- Revision of Guidelines
Please refer to the Master Circular DBR.CO.RRB.BL.BC.No.17/31.01.002/2015-16
dated July 01, 2015 consolidating instructions/guidelines
issued to Regional Rural Banks (RRBs) on Branch Licensing till June 30,
2015.
2. In terms of announcement made
in the first Bi-monthly Monetary Policy
Statement 2016-17 on April 5, 2016, it was, inter alia, proposed to
redefine branches and permissible methods of outreach keeping in view the
various attributes of the banks and the types of services that are sought to
be provided. An Internal Working group (IWG) was constituted for the
purpose and its Report was also placed on our web-site on October 6, 2016 seeking public comments.
3. Taking into account the
suggestions/feedback received from the Government of India and other
stakeholders, final guidelines on ‘Banking Outlets’ were issued for
commercial banks on May 18, 2017 and
now are being issued for RRBs as detailed in the Annex which shall be operational with
immediate effect.
Yours faithfully
(Dr. S.K. Kar)
Chief General Manager
Encl: As above
Extract of Statement of
Developmental and Regulatory Policies, Reserve Bank of India – Issued on
April 6, 2017
11. Banking Outlets: Final
Guidelines - Final guidelines are proposed to be issued on banking outlets,
clarifying on what is a ‘banking outlet’ and harmonising the treatment of
different forms of bank presence for the purpose of opening outlets in
underserved areas. These will supersede the branch licensing guidelines in
force.
Annex
Opening
of new place of business and transfer of existing places of business
(Section 23 of the Banking Regulation Act, 1949) – Revised Guidelines for
RRBs
1. Scope of Application
These guidelines are applicable
to all Regional Rural Banks
2. Date of Application
These guidelines come into
effect from the date of issue of the Circular.
3. Definitions
The following definitions are to
be used for the purpose of this policy framework:
3.1 Banking Outlet/Part-time
Banking Outlet
3.1.1 A ‘Banking Outlet’ for a
Regional Rural Bank is a fixed point service delivery unit, manned by
either bank’s staff or its Business Correspondent where services of
acceptance of deposits, encashment of cheques/ cash withdrawal or lending
of money are provided for a minimum of four hours per day for at least five
days a week. It carries uniform signage with name of the bank and
authorisation from it, contact details of the controlling authorities and
complaint escalation mechanism. The bank should have a regular off-site and
on-site monitoring of the banking outlet to ensure proper supervision,
uninterrupted service except temporary interruptions due to telecom
connectivity, etc. and timely addressing of customer grievances. The
working hours/days need to be displayed prominently.
3.1.2 A banking outlet which
does not provide delivery of service for a minimum of four hours per day
and for at least five days a week will be considered a ‘Part-time Banking
Outlet’.
3.2 Unbanked Rural Centre
An ‘Unbanked Rural Centre’ (URC)
is a rural (Tier 5 and 6) centre that does not have a CBS-enabled banking
outlet of a Scheduled Commercial Bank, a Small Finance Bank, a Payment Bank
or a Regional Rural Bank nor a branch of Local Area Bank or licensed Co-operative
Bank for carrying out customer based banking transactions.
N.B.1: Extension Counters,
Satellite Offices, Part-shifted Branches, Ultra Small Branches and
Specialised Branches, subject to their satisfying the definition given
above, shall be treated as independent ‘Banking Outlets’ or ‘Part-time
Banking Outlets’, as the case may be.
N.B.2: ATMs, E- lobbies, Bunch
Note Acceptor Machines (BNAM), Cash Deposit Machines (CDM), E- Kiosks and
Mobile Branches will not be treated as ‘Banking Outlets’. Point of Sale
(PoS) terminals where limited cash withdrawal facility is allowed by banks
in terms of extant instructions without having an arrangement with the
concerned entities as ‘Business Correspondents’ will not be considered as
‘Banking Outlets’.
4. Opening of Banking Outlets by
Regional Rural Banks
4.1 (a) Regional Rural Banks are
permitted to open banking outlets in Tier 1 to Tier 6 centres (as per
census 2011) as per the following arrangement:-
For opening of banking outlets
(excluding BC outlets) in Tier 1 to 4 centres, RRBs are required to obtain
prior approval of RBI. Their application shall be considered, provided they
fulfill the following conditions:
·
Minimum
CRAR of nine percent
·
Net
NPA ratio does not exceed five percent.
·
No
default in maintenance of CRR and SLR during last two years.
·
Net
Profit in the previous financial year.
·
All
branches and Head offices of the RRB should be CBS compliant and have in
place system generated NPA recognition.
4.1 (b) Regional Rural Banks
will have general permission for opening banking outlets in rural centres
i.e. Tier 5 and 6 centres (as per census 2011) without having the need to
seek specific approval from the Reserve Bank of India in each case, subject
to post facto reporting (within seven days of opening a banking outlet) to
Regional Office concerned of RBI.
(i) For opening branches in tier
1 to 4 centres during the current year, the permission for opening new
branches shall be granted, only after the RRB had achieved the target of
opening 25 percent of the total banking outlets in unbanked rural centres,
during the previous financial year.
(ii) RRBs opening branches in
Tier 5 and 6 centres, may approach the Regional Office concerned of RBI for
post-facto automatic issue of the licence/s.
(iii) The licence should be
displayed in the premises of the branch so opened for information of its
customers / public to instil confidence in them that the bank branch is
authorized to conduct banking business.
4.1 (c) The Regional Office
concerned of RBI, through the Empowered Committee on Regional Rural Banks,
shall also be responsible for monitoring opening/closing/shifting /merger
of banking outlets of the RRBs under their jurisdiction. Further, if any
RRB fails to adhere to the requirement of opening 25% banking outlets in a
URC, in a year, these RRBs shall not be permitted to open banking outlets
in Tier 1 to Tier 4 centres.
4.1 (d) The policy covers the
opening of ‘Banking Outlets’ in all Tiers as defined on the basis of
population as per Census 2011. The tier-wise and population group-wise
classification of centres is provided in Annex
I.
4.2 The opening of ‘Banking
Outlets’ during a financial year will be subject to the conditions given
below:
a.
At
least 25 percent of the total number of banking outlets opened during a
financial year must be opened in unbanked rural centres, as defined in Para
3.2 above.
b.
A
part-time banking outlet, opened in any Centre, will be counted and added
to the denominator as well as numerator on pro rata basis for computing the
requirement as well as the compliance with the norm of opening 25 per cent
banking outlets in unbanked rural centres. Some illustrations on the
computation of part-time banking outlet are provided under Annex II.
c.
A
banking outlet/part-time banking outlet opened in any Tier 3 to Tier 6
centre of North-Eastern States as well as in any Tier 3 to 6 centre of
Left-wing Extremism (LWE) affected districts as notified by the Government
of India from time to time, will be considered as equivalent to opening a
banking outlet/ part-time banking outlet, as the case may be, in a URC. A
list of LWE affected districts as notified by the Government as on February
24, 2016, is being provided in Annex III.
As the overall objective of these guidelines is enabling expansion of
banking facilities in these under banked/ underserved centres, each banking
outlet opened, irrespective of the banked/unbanked status of the centre,
will be reckoned as having been opened in an URC.
d.
A
full-fledged ‘brick and mortar’ branch opened in a rural (Tier 5 and 6)
centre which is already being served by a fixed point BC outlet by any bank
will be eligible to be treated as equivalent to opening a banking outlet in
a URC. In other words, the first fixed point BC outlet of a bank as well as
the first ‘brick and mortar’ branch of any bank opened in a URC will be
reckoned for computing compliance with the 25 per cent norm.
e.
The
time given to a bank for opening a banking outlet is one year. If a bank
fails to adhere to the requirement of opening 25% banking outlets in URC in
a year, appropriate penal measures, including restrictions on opening of
banking outlets in Tier 1 to 4 centres (except tier 5 and 6) shall be
imposed.
4.3 To encourage the RRBs to
open more number of banking outlets in unbanked rural centres, they will be
allowed to carry forward the benefit of the banking outlets, if any, opened
in excess of the requirement specified in para 4.2 above, for a period of
next 2 years. No further extension to avail the benefit will be allowed.
4.4. To enable banks to have
information for identifying an unbanked rural centre, State Level Bankers
Committees (SLBCs) shall play a constructive and proactive role. The SLBCs
shall compile and have an updated list of all unbanked rural centres in the
state which shall be displayed on their website. This list will facilitate
banks to choose/indicate the place where they wish to open a banking
outlet. Banks shall inform and coordinate with the SLBC convenor bank to earmark
the centre identified by them. If a bank fails to open the banking outlet
in the prescribed period of 1 year as per para 4.2 (e) above, the SLBC
convenor bank may indicate the centre as available for other banks to open
a banking outlet.
4.5 If a RRB proposes to
undertake government business at any of the banking outlets/part-time
banking outlets, it would require prior approval of the Government
authority concerned as also of Department of Government and Bank Accounts,
Reserve Bank of India, Central Office, Mumbai.
5. Merger/Closure/
Shifting/Conversion of ‘Banking Outlets’
5.1 RRBs may shift, merge or
close all banking outlets (except rural outlets and sole semi-urban
outlets) at their discretion.
5.2 Merger, closure and shifting
of any rural banking outlet as well as a sole semi urban banking outlet
would require approval of the DCC/DLRC and Regional Office concerned of
RBI. However, conversion of any rural or sole semi-urban banking outlet
into a full-fledged brick and mortar branch and vice versa would not
require such approval. While merging/closing/shifting/converting a rural or
a sole semi urban banking outlet, banks and DCC/DLRC shall ensure that the
banking service needs at that centre continue to be met, without
disruptions.
5.3 RRBs should also ensure that
customers of the banking outlet, which is being merged/closed/shifted are
informed two months in advance so as to avoid inconvenience to them.
Further, banks should ensure that they continue to fulfil the role
entrusted to these banking outlets under the Government sponsored
programmes and Direct Benefit Transfer schemes.
5.4 It may further be ensured
that banking outlets are shifted within the same or to a lesser population
category, i.e., semi urban banking outlets to semi urban or rural centres
and rural banking outlets to other rural centres.
6. Annual Banking Outlet
Expansion Plan
Regional Rural Banks shall
submit their Annual Banking Outlet Expansion Plan (ABOEP), with the
approval of Board of Directors, together with the consolidated details of
proposals for opening, closing, shifting, merger and conversion of these
banking outlets as per Proforma given in Annex
IV, to Regional Office concerned of RBI, and to NABARD for
monitoring.
6.2 It should be ensured that
all the proposals conform to the guidelines contained in the above paras
applicable to RRBs. Individual proposals for opening new branches at
specific centres, for which prior permission is required from RBI, must be
submitted in the prescribed Form VI in
terms of Rule 12 of the Banking Regulation (Companies Rules),
1949, to the concerned Regional office of RBI with recommendation of NABARD
for approval. The ABOEP and any other proposal required to be submitted to
RBI in this regard should have the approval of the Board of Directors of
the bank. RRBs shall ensure that an authenticated / certified copy of such
approval is invariably submitted along with these proposals.
7. Manning of
ATMs/E-kiosks/CDMs/BNAMs
Banks are allowed to set up
onsite/offsite Automated Teller Machines (ATMs) at centres/places
identified by them. Banks at their discretion may post suitable staff
member(s) to provide guidance to the customers using the services of these
outlets. Such ATMs shall not be reckoned as banking outlets as defined in
paragraph 3.1 of the circular.
8. Mobile Branches – Extension
to All Tiers
The scheme of mobile branch
envisages 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 offices
would be attached to a branch of an RRB.
Regional Rural Banks are allowed
to open/operate mobile branches in all Centres. These mobile branches will
not be considered as ‘Banking Outlets’.
9. Setting up of Regional
Offices, Administrative Offices, Back Offices (Central Processing
Centres/Service Branches) and Call Centres, etc.
9.1 RRBs shall be allowed to
open one Regional Office (RO) for every 50 banking outlets. However, RRBs
are required to obtain licence from the concerned Regional Office of RBI
prior to functioning / opening of these offices. RRBs having up to 50
banking outlets will be under the direct control of the Head Office,
without any intermediate tier. The cases of RRBs, which require relaxation
in the above norm with regard to the number of branches to be covered by
one RO due to geographical / other conditions, will be examined by the
Empowered Committee (EC) and referred to Central Office, Department of
Banking Regulation (DBR) for consideration.
The ROs shall not be permitted
to transact any banking business. RRBs can either shift or close / merge
these offices at their discretion without prior approval of RBI, but they
are required to inform the change in address to the concerned Regional
Office of RBI at the earliest, but not later than one month from the date
of shifting. As regards closure / merger of such offices, the same may be
communicated to the concerned Regional Office of RBI for cancellation
immediately after the closure / merger of the office under advice to the
DSIM of RBI.
9.2 RRBs may set up Training
Centres, Back Offices (Central Processing Centres (CPCs)/Service Branches),
Treasury Branches and Call Centres, etc. exclusively to attend to back
office functions such as and other functions incidental to their banking
business after obtaining necessary permission from the concerned Regional
Office of RBI. They should not have any interface with customers and shall
not allowed to be converted into general banking branches.
9.3 The banks should ensure that
administrative offices, training centres, back offices i.e. CPCs/service
branches, etc. which are set up exclusively to attend to back office
functions such as administration, data processing, verification and processing
of documents, issuance of cheque books, etc. on requests received from
other banking outlets should not have any direct interface with customers
for them to be not considered as banking outlets. Banks currently having
specific permission to allow customer interface at these back offices
(service branches and/or CPCs), have to align with the above instructions
within one year from the date of this circular and report compliance to
Regional offices concerned of RBI.
10. Business Facilitator/
Business Correspondent Model
The instructions on Business
Facilitator/Business Correspondent Model as contained in our Master Circular DBR.CO.RRB.BL.BC.No.17/31.01.002/2015-16
dated July 01, 2015 remain unchanged.
11. Customer Education
While the banks will continue to
follow guidelines as indicated in our Master
Circular DBR.CO.RRB.BL.BC.No.17/31.01.002/2015-16 dated July 01, 2015 they
should also ensure to enlighten people about banking outlets, as adequate
substitutes for physical ‘brick and mortar’ branches in low population
density or low population locations.
12. Reporting Requirements
12.1 RRBs shall furnish the
information as per Proforma I (Annex VI) on
opening of new place of business i.e. branch/office/NAIOs
(Non-Administratively Independent Office) and Proforma II (Annex VII) on change in status – merger,
conversion, closure, etc. to Department of Statistics and Information
Management (DSIM), Banking Statistics Division, Reserve Bank of India,
Central Office, C-8/9, Bandra-Kurla Complex, Mumbai-400051.
12.2 As regards fixed point BC
outlets classified as banking outlets, banks are required to report the
data as per Annex VIII on
quarterly basis starting from April 01, 2018. In order to furnish the
initial statistics, banks have to furnish the first such report to DSIM,
Reserve Bank of India (position as on March 31, 2017), not later than one
month from the date of issue of this Circular.
12.3 From the current year
2018-19, the reporting on opening of branches to the Department of Banking
Regulation, Central Office has been dispensed with.
13. All the salient changes made
from the existing branch authorization framework are furnished in the Appendix.
Annex
I
Details of tier-wise
classification of centres based on population
i)
Classification of centres (tier-wise)
|
Population
(as per 2011 Census)
|
Tier 1
|
- 1,00,000 and above
|
Tier 2
|
- 50,000 to 99,999
|
Tier 3
|
- 20,000 to 49,999
|
Tier 4
|
- 10,000 to 19,999
|
Tier 5
|
- 5,000 to 9,999
|
Tier 6
|
- Less than 5000
|
ii) Population-group wise
classification of centres
Rural Centre
|
- Population up to 9,999
|
Semi-urban centre
|
- from 10,000 to 99,999
|
Urban centre
|
- from 1,00,000 to 9,99,999
|
Metropolitan centre
|
- 10,00,000 and above
|
Annex
II
Illustrations for calculation of
part time banking outlets
Prescribed Period for Banking
Outlet is 4 hours per day for 5 days (min. 20 hours spread over 5 days)
this will remain constant denominator. For ensuring that fairly regular
service is available to customers, a maximum of 4 hours per day will be
counted.
Example I
A banking outlet works for 2
hours for 2 days
Multiplying 2 x 2= 4 hours out
of 20 prescribed hours.
It will be counted 0.2 (4/20)
outlet.
It would be added to the
denominator (if opened in any centre/any tier) and in the numerator (if
opened in URC).
Example 2:
A banking outlet works for 6
hours for 3 days
Max. Benefit allowed: 4 hours
per day
Hence 4x3 = 12 so 12/20 = It
will be equal to 0.6 outlet.
Example 3:
Total no. of Banking Outlets
(Full time) opened - 100
Opened in URCs (Full time) – 30
Opened in URCs (Part time
Banking Outlet) - 2 outlets working for 6 hours for 3 days in URCs
Max. Benefit allowed: 4 hours
per day
Hence 4x3 = 12 so 12/20 = It
will be equal to 0.6 = 06*2 = 1.2 outlets.
For computation of 25% URC,
Total outlets opened = 100+1.2 =
101.2
Opened in URC = 30+1.2 =31.2
URC % = 31.2/101.2*100 = 30.83%
(Complies with the norm)
Appendix
Revised
Guidelines on Authorisation of Banking Outlets – Major Changes
Sr.
No.
|
Particulars
|
Old
Provisions
|
New
Provisions
|
1
|
Banking Outlets/Other Outlets
defined
|
Branch - A "branch" would include all branches
i.e. full-fledged branches, specialized branches, satellite offices,
mobile branches Extension Counters, off-site ATMs (Automated Teller
Machines), administrative offices, controlling offices, service branches
(back office or processing centre) etc. A call centre will not be treated
as a branch.
|
In place of branch, a banking
outlet (which includes a branch as well as BC outlet, amongst others) has
been defined as under:
Banking Outlet - A ‘Banking Outlet’ for a RRB, is a fixed point
service delivery unit, manned by either bank’s staff or its Business
Correspondent where services of acceptance of deposits, encashment of
cheques / cash withdrawal or lending of money are provided for a minimum
of 4 hours per day for at least five days a week.
Part time Banking Outlets - Any fixed point service delivery unit of the
bank which does not comply with the prescription regarding minimum
working hours/days will be considered as a ‘Part-time Banking Outlet’.
|
2
|
Unbanked rural centre
redefined
|
Unbanked rural centres are
those which do not have any brick and mortar structure of any scheduled
commercial bank for customer based banking transactions.
|
An unbanked rural centre (URC)
is defined as a rural (Tier 5 and 6) centre that does not have a
CBS-enabled ‘Banking Outlet’ of a Scheduled Commercial Bank, a Payment
Bank or a SFB or a Regional Rural Bank nor a branch of a Local Area Bank
or licensed Co-operative Bank for carrying out customer based banking
transactions.
|
3
|
Condition for opening of 25%
branches modified
|
At least 25 percent of the
total number of branches opened during a financial year (excluding
entitlement for branches in Tier 1 centres given by way of incentive),
must be opened in unbanked rural (Tier 5 and Tier 6) centres.
|
At least 25 percent of the
total number of ‘Banking Outlets’ opened during a financial year must be
opened in an unbanked rural centres (Tier 5 and Tier 6).
Pro-rata benefit for part-time banking outlet will be given.
|
4.
|
Procedure for opening of
Branches
|
RRBs are required to obtain
prior approval of RBI for opening branches in Tier 1 centres. Their
applications will be considered, provided they fulfill the following
conditions:
·
No
default in maintenance of SLR and CRR during the last two years;
·
Operating
profits are being made;
·
Net
worth shows improvement; and
·
Net
NPA ratio does not exceed 8 per cent.
(b) (i) RRBs are permitted to
open branches in Tier 2 to Tier 6 centers (with population of up to
99,999 as per Census 2001) without having the need to take permission
from Reserve Bank of India in each case, subject to reporting, provided
they fulfill the following conditions as per the latest inspection report
:
·
CRAR
of at least 9%;
·
Net
NPA ratio less than 5%;
·
No
default in maintenance of CRR / SLR for the last year; and
·
Net
profit in the last financial year;
·
CBS
compliant
(ii) RRBs eligible to open
branches in Tier 2 to Tier 6 centres, under general permission, may
approach the Regional Office of RBI for post-facto automatic issue of the
licence/s. The licence should be displayed in the premises of the branch
so opened for information of its customers / public to instill confidence
in them that the bank branch is authorized to conduct banking business.
(iii) RRBs which are not eligible are required to apply to RBI for prior
permission to open branches in Tier 2 to 6 centres. Their applications
will be considered provided they fulfill the conditions laid down in
paragraph II (1) (a).
|
(a) Regional Rural Banks are
permitted to open Banking Outlets in Tier 1 to Tier 6 centres (as per
census 2011) as per the following arrangement:-
For opening of Banking Outlets (excluding BC outlets) in Tier 1 to 4
centres, RRBs are required to obtain prior approval of RBI. Their
application shall be considered, provided they fulfill the following
conditions:
·
Minimum
CRAR of nine percent
·
Net
NPA ratio does not exceed five percent.
·
No
default in maintenance of CRR and SLR during last two years.
·
Net
Profit in the previous financial year.
·
All
branches and Head offices of the RRB should be CBS compliant and have in
place system generated NPA recognition.
(b) Regional Rural Banks will
have general permission for opening Banking outlets in Tier 5 and 6
centres (as per census 2011) without having the need to seek specific
approval from the Reserve Bank of India in each case, subject to post
facto reporting (within seven days of opening a banking outlet) to
Regional Office concerned of RBI.
(i) For opening branches in tier 1 to 4 centres during the current year,
the permission for opening new branches shall be granted, only after the
RRB had achieved the target of opening 25 percent of the total banking
outlets in Unbanked Rural Centres, during the previous financial year.
(ii) RRBs opening branches in Tier 5 and 6 centres, may approach the
Regional Office concerned of RBI for post-facto automatic issue of the
licence/s.
(iii) The licence should be displayed in the premises of the branch so
opened for information of its customers / public to instil confidence in
them that the bank branch is authorized to conduct banking business.
|
5.
|
Front loading of branches in
Unbanked Rural Centres – delinking from FIPs
|
The banks may consider
front-loading (prioritizing) the opening of branches in unbanked rural
centres over a 3 year cycle co-terminus with their Financial Inclusion
Plan (FIP 2013-16).
|
To encourage the RRBs to open
more number of banking outlets in unbanked rural centres, they will be
allowed to carry forward the benefit of the ‘Banking Outlets’, if any,
opened in excess of the requirement specified in para 4.2 of the
circular, for a period of next 2 years. No further extension to avail the
benefit will be allowed.
|
6.
|
Merger/Closure/
Shifting/Conversion of ‘Banking Outlets’
|
Shifting of Branches - At
Rural Centres
(a) The shifting of branches in rural centres may be effected by RRBs
themselves without obtaining the prior
approval of RBI, subject to the condition
that both the existing and proposed centres are within the same block,
and that the relocated branch would be able to cater adequately to the
banking needs of the villages served by the existing branch.
Shifting of Branches - At
Urban / Metropolitan Centres / Semi Urban Centres
(b)(i) RRBs may shift their
branches at semi urban centres / urban / metropolitan centres within the
same locality / municipal ward without
the prior approval of RBI.
It should, however, be ensured that the locality / ward is not rendered
unbanked due to the shifting of branch/es.
(ii) RRBs have to obtain prior
approval of the concerned Regional Office of RBI for shifting of branches outside the locality /
municipal ward at semi urban / urban / metropolitan centres.
(c) RRBs may shift their branches as indicated above, but ensure that the
licence of the branch is submitted to the concerned Regional Office of
RBI for getting the new address incorporated therein at the earliest but
not later than three months from the date of the shifting of the branch.
(d) RRBs 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.
Conversion of Branches
(a) RRBs may themselves decide
the need for conversion of the existing loss making branches into
satellite / mobile offices keeping in view the cost-benefit aspect, the
likely inconvenience that may be caused to the existing clientele, the
effect of the conversion on the performance in the preparation of
district credit plan and priority sector lending. With a view to
providing better customer service in rural areas, RRBs may also convert their
satellite offices into full-fledged
branches after obtaining concurrence from the Empowered Committee (EC)
and RRBs should also obtain necessary licence from the concerned Regional
Office of RBI.
(b) Conversion of branches
into satellite offices at centres other
than rural is not permissible.
Merger of Branches - Where two loss making branches of any RRB are in
close proximity to each other (i.e. within a distance of about 5 kms.),
the RRB may consider merging the two branches with a view to rationalising
the spatial spread and reducing establishment / operating costs.
|
RRBs may shift, merge or close
all ‘Banking Outlets’ (except rural outlets and sole semi-urban outlets)
at their discretion.
Merger, Closure and shifting of any Rural ‘Banking Outlet’ as well as a
Sole Semi Urban ‘Banking Outlet’ would require approval of the DCC/DLRC
and Regional office concerned of RBI. However, conversion of any rural or
sole semi-urban banking outlet into a full-fledged brick and mortar
branch and vice versa would not require such approval. While
merging/closing/shifting/converting a rural or a sole semi urban ‘Banking
Outlet’, banks and DCC/DLRC shall ensure that the banking service needs
at that centre continue to be met, without disruptions.
RRBs should also ensure that customers of the Banking Outlet, which is
being merged/closed/shifted are informed two months in advance so as to
avoid inconvenience to them. Further, banks should ensure that they
continue to fulfil the role entrusted to these ‘Banking Outlets’ under
the Government sponsored programmes and Direct Benefit Transfer Schemes.
It may further be ensured that ‘Banking Outlets’ are shifted within the
same or to a lesser population category, i.e., semi urban ‘Banking
Outlets’ to semi urban or rural centres and rural ‘Banking Outlets’ to
other rural centres.
|
7
|
Mobile Branches
|
The mobile office/s should not
visit the rural places which are served by cooperative banks and places
served by regular offices of commercial banks.
|
Regional Rural Banks are
allowed to open/operate mobile branches in all Centres. These mobile
branches will not be considered as Banking Outlets.
|
8.
|
Setting up of Administrative
Offices, Back Offices (Central Processing Centres/Service Branches) and
Call Centres etc.
|
Although current guidelines
prohibited any customer interaction, over time, some exceptions were
allowed based on banks’ requests which are not uniform in nature.
|
No Customer Interface will be
allowed. Banks which are currently having specific permission to allow
limited customer interface at CPCs will have to align with the above
instructions within one year from the date of this circular.
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9
|
Guidelines on Satellite
Offices, Part Shifting of branches, Extension Counters, Ultra small
Branches, Specialised Branches subsumed.
|
Separate guidelines existed
for these outlets.
|
No separate guidelines
required as all these outlets will be considered as banking outlets or
part-time banking outlets, as the case may be.
|
10
|
Role of Board of Directors
|
Limited to approval of Annual
Branch Expansion Plans.
|
Financial Inclusion being the
overarching objective of the revised framework and the operational
flexibility being given to banks, the Board has been given overall
responsibility to ensure that all the guidelines are complied with.
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11
|
Reporting Requirements
|
-
|
From the current year 2018-19,
the reporting on opening of branches to the Department of Banking
Regulation, Central Office has been dispensed with.
|
|