RBI/2010-11/ 390
DBOD.No.BL.BC. 78/22.01.001/2010-11
January 27, 2011
7 Magha, 1932 ( Saka)
All Scheduled Commercial Banks (excluding RRBs)
Madam / Dear Sir,
Section 23 of the Banking Regulation Act, 1949
Relaxations in Branch Authorisation Policy
In terms of Circular DBOD.No.BL.BC. 65/22.01.001/2009-10 dated December 1,
2009, general permission was granted to domestic scheduled commercial banks
(other than RRBs) to open branches in Tier -3 to Tier- 6 centres (with
population upto 49,999 as per Census 2001) and in rural, semi urban and urban
centres in the North Eastern States and Sikkim, subject to reporting.
- We have been receiving queries from banks regarding applicability of
distance criteria envisaged in paragraph 6.3(b) of the Master Circular on
Branch Authorisation DBOD.No. BL.BC. 8/22.01.001/2010-11 dated July 1, 2010
for opening of branches under general permission. It is clarified that
conditions mentioned at paragraph 6.3 (b) of the Master Circular referred to
above is not applicable to opening of branches under general permission.
- Further, it has been decided to grant general permission to domestic
scheduled commercial banks (other than RRBs) to open Administrative Offices
and Central Processing Centres (CPC) / service branches in Tier- 3 to Tier-
6 centres (with population upto 49,999 as per census 2001) and in rural,
semi urban and urban centres in the North Eastern States and Sikkim, subject
to reporting. Administrative Office (Controlling Offices ) would be carrying
out administrative work. Central Processing Centres (CPCs)/ Service branches
would exclusively attend to back office functions. These Central Processing
Centres (CPCs)/ Service branches should not have direct interface with
customers.
- Banks should ensure that the centres where the branches are opened under
general permission are not the outgrowth (locality developed around bigger
centre) of a bigger centre. Department of Statistics and Information
Management (DSIM) has clarified that outgrowth of a bigger centre would have
the same population group classification as that of the bigger centre.
- Details of Administrative Offices and Central Processing Centres
(CPC) / service branches opened by banks under general permission should be
reported to RBI in terms of the existing reporting system envisaged in
paragraph 19 of the Master circular on Branch Authorisation dated July 1,
2010.
Yours faithfully,
(A.K. Khound)
Chief General Manager