Tuesday, September 8, 2015
Section 23 of the Banking Regulation Act, 1949 - Relaxations in Branch Authorisation Policy
The existing instructions of Domestic scheduled commercial banks (other than RRBs) to open branches in Tier 1 to Tier 6 centres without the permission of RBI have been dispensed with.
The revised instructions are:
Merger/Closure/ Shifting of branches
i) Banks may shift, merge or close all branches except rural and sole semi-urban branches at their discretion.
ii)In case of rural & sole semi urban branches, approval of DCC/DLRC would be required. Banks must ensure that the centres are not be left unbanked.
iii) Banks should inform the customers well in time.
iv) Branches are to be shifted within the same or to a lesser population category.
v) The license of the branch should be surrendered.
Banks may shift their metropolitan, urban and semi urban branches outside the State, and their rural branches outside the block without prior approval of RBI.
Part-shifting of Branches
Banks may shift some activities of a branch in any other centre at a location within 1 km . However, deposit or loan business cannot be maintained at both places.
Opening of Extension Counters
It is no longer necessary to be their principal banker of the institution, to open an extention counter there.
Based on the RBI Circular dt 6/8/15.
Please visit www.rbi.org.in for any further clarification if required…………….. Poppy