RBI revises guideline on Rationalisation of Branch Authorisation Policy

Jun 10, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on May 31, 2019, has revised the guidelines on rationalization of Bank Authorisation Policy. It was 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 and an Internal Working group (IWG) was constituted for the purpose. The 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.

The definitions used for the purpose of this policy framework are:

1. Banking Outlet/Part-time Banking Outlet

2. Unbanked Rural Centre

3. Opening of Banking Outlets by Regional Rural Banks

4. Merger/Closure/ Shifting/Conversion of ‘Banking Outlets’

5. Annual Banking Outlet Expansion Plan

6. Manning of ATMs/E-kiosks/CDMs/BNAMs

7. Mobile Branches – Extension to All Tiers

8. Setting up of Regional Offices, Administrative Offices, Back Offices (Central Processing Centres/Service Branches) and Call Centres, etc.

9. Business Facilitator/ Business Correspondent Model

10. Customer Education

11. Reporting Requirements

[Notification No.: DBR.RRB.BL.BC.No.40/31.01.002/2018-19]

Click here to download the Notification.

 


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