RBI/2005-06/93
DBOD. No.BL.BC.24 / 22.01.001 /2005-06
August 3, 2005
Shravana 12, 1927 (Saka)
Chief Executives
All Indian scheduled Commercial Banks
(excluding RRBs)
Dear Sir / Madam,
Section 23 of the Banking Regulation
Act, 1949 - Branch Expansion strategy of banks
As you are aware, banks are submitting
applications to us for opening of branches / offices at any time during the
year. It has been decided to change this procedure and banks are required to
make applications for branch expansion on annual basis linking it to their overall
mid-term corporate strategy for branch expansion / business growth keeping in
mind the developmental needs of unbanked regions and potential for growth available
across the country.
2. You are, therefore, requested
to formulate a detailed mid-term corporate plan for branch expansion for a three
year period with the approval of your Board. The plan should henceforth cover
all categories of branches / offices having customer contact, including specialised
branches, Extension Counters and number of ATMs etc. The plan should be formulated
on district-wise basis giving number of branches proposed to be opened in Metropolitan/Urban/Semi-Urban/Rural
areas.
3. The proposal for branch expansion
with the above mentioned details should be submitted to us on an annual basis
by December every year.
4. However, for the current
year (2005-06), the branch expansion plan may be submitted at the earliest indicating
the district-wise proposals for opening of branches (all categories) with break
up according to population groups. The proposals may include plans for upgradation
of extension counters to full fledged branches and conversion of specialised
branches into regular branches.
5. We forward herewith a list
of underbanked districts / States to enable you to plan your expansion
in these areas. While considering your bank's proposals for branches, weightage
will be given to the number of branches proposed to be opened in these districts
/ States.
Yours faithfully,
Sd/-
(Lalit Srivastava)
General Manager
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