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Section 23 of Banking Regulation Act, 1949 – Master Circular on Branch Authorisation

RBI/2007-08/55
DBOD.No. BL.BC.16 /22.01.001/2007-08

July 2, 2007
Aashadha 11, 1929(Saka)

All Scheduled Commercial Banks and Local Area Banks
(excluding RRBs)

Dear Sirs,

Section 23 of Banking Regulation Act, 1949 – Master Circular on Branch Authorisation

As you are aware, with the announcement of the revised policy on branch authorisation, the Reserve Bank of India had issued a Master Circular DBOD.No. BL.BC.11/22.01.001/2006 dated July 1, 2006 on the captioned subject, which is now updated upto 30th June 2007. A copy of the revised Master Circular is enclosed. It may be noted that the Master Circular consolidates and updates all the instructions contained in the circulars listed in the Appendix, in so far as they relate to branch authorisation. The Master Circular has also been placed on the RBI website (http://www.rbi.org.in).

2. Foreign banks may be guided by paragraph 19 of this Master Circular.

Yours faithfully,

( P. Vijaya Bhaskar)
Chief General Manager


Contents

Paragraph No.             Subject

I. POLICY ASPECTS

1. LEGAL REQUIREMENT

2. DEFINITION

3. BRANCH AUTHORISATION POLICY

II. PROCEDURAL ASPECTS

4. PROCEDURE FOR APPLICATION

5. VALIDITY OF AUTHORISATIONS

6. OPENING OF BRANCHES

7. SUBSTITUTION OF CENTRE

8. SETTING UP OF CENTRAL PROCESSING CENTRES/ BACK OFFICES

9. CALL CENTRES

10. BUSINESS FACILITATORS/ BUSINESS CORRESPONDENT MODEL

11. DOORSTEP BANKING

12. SHIFTING OF BRANCHES

12.1 General

12.2 Shifting within the centre (city/ town/village)

12.3Rural branches

12.3.1Within the block

12.3.2Outside the block

12.4Metropolitan, Urban and Semi Urban branches

13. CONVERSION OF BRANCHES

13.1 Conversion of Specialised Branch

13.2 Conversion of general banking branches to any type of specialized branch

13.3 Upgradation of Extension Counters into full-fledged branches

13.4 Conversion of Rural Branch into Satellite Office

14. MERGER OF BRANCHES

14.1General

14.2 Merger of Sole Rural/ Semi Urban Branch

14.3 Merger of Metropolitan, Urban and Semi Urban Branches

15. CLOSURE OF BRANCHES

15.1General

15.2 Closure of Rural branches

15.3 Metropolitan, Urban and Semi - Urban branches

III. MISCELLANEOUS ASPECTS

16. ACQUISITION OF PREMISES - OPENING OF BRANCHES

17. POPULATION GROUP WISE CLASSIFICATION OF CENTRES

18. REPORTING TO RESERVE BANK OF INDIA

19. FOREIGN BANKS

ANNEX – I
ANNEX – II
ANNEX – III
ANNEX - IV (A)
ANNEX - IV (B)
ANNEX - IV (C)
ANNEX - IV (D)
ANNEX – V
ANNEX – VI
ANNEX – VII
ANNEX – VIII

ANNEX – IX
ANNEX X
APPENDIX


Master Circular on Branch Authorisation

I. POLICY ASPECTS

1. Legal Requirement

The opening of new branches and shifting of existing branches of banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot, without the prior approval of the Reserve Bank of India (RBI), open a new place of business in India or abroad or change, otherwise than within the same city, town or village, the location of the existing place of business. Section 23 (2) of the Banking Regulation Act lays down that before granting any permission under this section, the Reserve Bank may require to be satisfied, by an inspection under Section 35 or otherwise, as to the financial condition and history of the banking company, the general character of its management, the adequacy of its capital structure and earning prospects and that public interest will be served by the opening or, as the case may be, change of location of the existing place of business. Therefore, it is mandatory for commercial banks and urban cooperative banks to obtain prior approval of Reserve Bank of India before opening a new branch/ office. Commercial banks including Local Area Banks (other than RRBs) should approach Department of Banking Operations & Development, Central Office, Urban Co-operative Banks should approach Urban Banks Department and Regional Rural Banks should approach Rural Planning and Credit Department in this regard.

The following guidelines relate to the policy for authorisation of branches in India.

2. Definition

For the purpose of branch authorisation policy, a "branch" would include a full-fledged branch, a satellite office, an Extension Counter, an off-site ATM (Automated Teller Machine), administrative office, controlling office, service branch (back office or processing centre) and credit card centre. A call centre will not be treated as a branch. A call centre is one where only accounts or product information is provided to the customer through tele-banking facility and no banking transaction is undertaken through such centres. Also, no direct interface with clients/ customers is permitted at call centres.

3. Branch Authorisation Policy

(i) With the objective of liberalising and rationalising the branch authorisation policy, a framework for a branch authorisation policy which would be consistent with the medium term corporate strategy of banks and public interest has been put in place. In addition to the requirement relating to the financial condition and history of the banking company, the general character of its management, the adequacy of its capital structure and earning prospects, the branch authorisation policy framework would have the elements enumerated in the following paragraphs.

(ii) As regards the public interest dimensions of the policy framework, the following aspects would be kept in view in processing the authorisation requests:

(a) The RBI will, while considering applications for opening branches give weightage to the nature and scope of banking facilities provided by banks to common persons, particularly in underbanked areas (districts), actual credit flow to the priority sector, pricing of products and overall efforts for promoting financial inclusion, including introduction of appropriate new products and the enhanced use of technology for delivery of banking services.

(b) Such an assessment will include policy on minimum balance requirements and whether depositors have access to minimum banking or "no frills" banking services, commitment to the basic banking activity viz., acceptance of deposits and provision of credit and quality of customer service as, inter alia, evidenced by the number of complaints received and the redressal mechanism in place in the bank for the purpose.

(c) The need to induce enhanced competition in the banking sector at various locations.

(d) Regulatory comfort will also be relevant in this regard. This would encompass:

compliance with not only the letter of the regulations but also whether the bank’s activities are in compliance with the spirit and underlying principles of the regulations.

the activities of the banking group and the nature of relationship of the bank with its subsidiaries, affiliates and associates.

quality of corporate governance, proper risk management systems and internal control mechanism.

(iii) As regards the procedural aspects, the existing system of granting authorisations for opening individual branches from time to time has been replaced by a system of giving aggregated approvals, on an annual basis, through a consultative and interactive process. Banks' branch expansion strategies and plans over the medium term would be discussed by the RBI with individual banks. The medium term framework and the specific proposals would cover the opening, closing, shifting, merger and conversion of all categories of branches including ATMs. Normally, the authorisations/ approvals, given on an annual basis would be valid for one year, from the date of communication.

(iv) In terms of the new branch authorisation policy, banks will not be required to approach Regional Offices of Reserve Bank of India for "licence". Banks are advised to follow the undermentioned procedure scrupulously, in order to comply with the requirements of Section 23 of Banking Regulation Act, 1949.

II. PROCEDURAL ASPECTS

4 Procedure for application

4.1 Based on the medium term strategy and considerations outlined in paragraph 3 above, banks should submit on an annual basis detailed proposals for opening new branches at specific centres in the prescribed Form VI (Rule 12) in terms of Banking Regulation (Companies Rules), 1949, to the Department of Banking Operations and Development, Central Office, Reserve Bank of India, Mumbai for approval. The Proforma of Form VI is enclosed in Annex - I. The summary of branches and off-site ATMs proposed to be opened may be submitted as per proformae in bilingual format in Annex II & III. Along with this, information sought in Annex IV (A, B, C & D) should also be furnished. The Form VI is not required to be submitted in respect of Off-site ATMs, Administrative Offices/ Controlling Offices, Credit Card Centres and Back offices/ Processing Centres.

4.2 Banks are free to submit their annual branch expansion plan any time during the year. It is not linked either to the financial year or calendar year. The annual branch expansion plan should include specific proposals for opening, closing, shifting, merger and conversion of branches where approval of RBI is required in terms of the extant instructions. Conversion would include upgradation of Extension Counter into a full-fledged branch, conversion of a specialised branch into another category of specialised branch or into a general banking branch. Requests for conversion of a general banking branch into a specialised branch would be examined on a case-to-case basis. The annual branch expansion plan will be discussed with the bank, normally, within four weeks from its submission and approvals thereof will be communicated thereafter.

4.3 Notwithstanding the above, banks may approach RBI for any urgent proposals regarding opening of branches, especially in rural/ underbanked areas(districts), anytime during the year, in addition to the approvals given under the annual plan, which would be considered on merit.

4.4 The Annual Branch Expansion Plan (ABEP) and any other proposals required to be submitted to RBI in this regard should have approval of Board of Directors of the Bank or such other authority to which powers have been delegated by the Board of the bank.

5. Validity of authorisations

5.1 The validity of the authorisation granted would be one year from the date of the issue of consolidated letter of authorisation/ permission issued to banks.

5.2 Generally, no extension in validity period of the authorisations would be allowed. However, in case the bank is unable to open a particular branch due to genuine reasons during the validity period of one year, they may approach the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa), for extension of time for a period not exceeding six months.

5.3 At centres where a bank fails to open a branch within the validity period of the authorisation i.e. one year (or within the extended time of six months, as the case may be), the permission granted would automatically lapse and if the bank is still interested in opening the branch at that centre, it should include the same in their next Annual Plan.

6. Opening of branches

6.1 Banks may include all proposals for opening of branches in the annual branch expansion plan. Banks may note that for opening of rural branches approval of District Consultative Committee (DCC) is not required. Banks are encouraged to open branches in under banked districts and rural centres. In order to facilitate banks to identify centres in underbanked districts, a list of such districts is given in Annex V.

6.2 Further, new private sector banks are required to ensure that at least 25% of their total branches are in semi-urban and rural centres on an ongoing basis.

7 . Substitution of centre

7.1 While finalising the centre/ place for opening of a branch, banks should make proper assessment, keeping in view the business potential for opening of the branch thereat. Normally substitution of centres would not be allowed. However, under exceptional circumstances, if banks are unable to open branch at the proposed centre due to genuine problem, banks should approach DBOD, CO alongwith reasons thereof, once in a year. The bank should submit Form VI in respect of the new centre. All such requests will be examined on a case-to-case basis.

7.2 Substitution of centres would be allowed to centres of a similar population group or to a lower population group provided banks undertake to open the branch within the period of validity of authorisation issued. Further, the substitution would not be allowed from a centre in underbanked district to a centre in other than underbanked district.

8. Setting up of Central Processing Centres/ Back offices

Banks may also set up Central Processing Centres (CPCs)/ Back Offices exclusively to attend to back office functions such as data processing, verification and processing of documents, issuance of cheque books, demand drafts etc. on requests received from other branches and other functions incidental to banking business. These CPCs/ Back Offices should have no interface with customers. These CPCs/ Back Offices would be termed as Service Branches and would not be allowed to be converted into General Banking Branches. The proposals for these CPCs/ Back Offices may be included in the annual branch expansion plan.

9. Call Centres

As no banking transaction is undertaken at a call centre, no permission is required for establishment of a "call centre" as defined in paragraph 2. However, details of opening, closure and shifting of call centres should be reported to RBI as provided in paragraph 18.

10. Business Facilitator/ Business Correspondent Model

With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, banks have been permitted to use the services of Non-Governmental Organisations / Self Help Group (NGOs/SHGs), Micro Finance Institutions (MFIs) and other Civil Society Organisations (CSOs) as intermediaries in providing financial and banking services through the use of Business Facilitator/ Business Correspondent Model as per the guidelines issued in this regard vide RBI circulars dated DBOD.No.BL.BC.58/22.01.001/2005-2006 dated January 25, 2006 and DBOD.No.BL.BC.72/22.01.009/2005-2006 dated March 22, 2006.

11. Doorstep Banking

Banks are permitted to prepare schemes for offering Doorstep Banking facilities to their customers (including individuals, Corporate, PSUs, Government department etc.), with the approval of their Boards, in accordance with the guidelines issued by Reserve bank of India vide circulars No.DBOD.BL.BC.59/22.01.010/2006-2007 dated February 21, 2007 and DBOD.BL.BC.99/22.01.010/2006-2007 dated May 24, 2007.

12. Shifting of branches

12.1 General

(a) Shifting of branches should be part of the medium term corporate strategy of branch expansion. Accordingly, proposals requiring approval of RBI should be included in the annual branch expansion plan as per proforma in Annex VI.

(b) Banks 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.

(c) The details of shifting (i.e. new address, date of shifting etc.) should be reported to the Regional Office concerned of RBI / DBOD CO(in respect of branches in Maharashtra & Goa) immediately after shifting the branch, and in any case not later than two weeks after the shifting.

(d) No amendment in licence would be required in such cases. The Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) will confirm in writing of having taken on record the new address/location.

12.2 Shifting within the centre (city/ town/ village)

Banks have been given freedom to shift a branch to any location within the centre (city/ town / village) without seeking prior approval from RBI. As such, these cases should not be included in the annual branch expansion plan for our approval.

12.3 Rural branches

12.3.1 Within the block

As a matter of policy, shifting of sole rural branch outside the centre / village is not permitted, as such shifting would render the centre unbanked. However, under exceptional/unforeseen circumstances (natural calamity, adverse law and order conditions) if the bank is compelled to shift any sole rural branch outside the centre, DCC approval should be obtained and proposal thereof should be included in the annual plan for our consideration.

Banks are, however, free to shift their rural branches, from centres which are served by more than one branch of a commercial bank, without obtaining prior approval of RBI. While considering shifting of branches, banks should keep in mind the role entrusted to these branches under the Government sponsored programmes. The shifting of branches should also meet the following minimum criteria:

(i)The new centre is of the same or lower population group as the existing centre e.g. a branch at a rural centre can be shifted to another rural centre only; and

(ii)A branch located in underbanked district can be shifted to another centre in an underbanked district only.

12.3.2 Outside the Block

Requests for shifting of branches from centres, which are served by more than one commercial bank branch (excluding Regional Rural Bank branch ) outside the block should be included in the annual branch expansion plan and the same will be considered based on the following parameters:

(i) Branches being shifted are in existence for five years or more and are incurring losses consecutively for the last three years;

(ii) Branches located at centres prone to certain natural risks such as, floods, landslides or likely to be submerged due to construction of dams or affected by any natural calamities etc;

(iii) Branches functioning in places where law and order problem, insurgency or terrorist activities pose threat to bank personnel and property;

(iv) Branches where the premises occupied by the bank are in a dilapidated condition or burnt/destroyed and no suitable premises are available at the centre etc.

12.4 Metropolitan, Urban and Semi Urban branches

(a)The banks may at their discretion shift their branches in metropolitan/urban/semi urban centres within the municipal revenue limit of that centre i.e. city/town without prior approval from RBI.

(b) Banks may also shift their branches within the same State (except single semi urban branches as such shifting would render the semi-urban centre unbanked) subject to the minimum criteria stated in para 12.3.1 (i) & (ii) above.

As such, these cases should not be included in the annual branch expansion plan for our approval.

13. Conversion of branches

13.1 Conversion of Specialised branch

Banks may convert a specialized branch into another category of specialized branch or a general banking branch at their discretion. However, it may be ensured that details thereof are advised to the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa) immediately after the conversion of the branch, and in any case not later than two weeks after conversion. No amendment to licence would be required. The Regional Office concerned / DBOD, CO (in respect of branches in Maharashtra & Goa) would confirm having taken on record the new nomenclature of the branch. Such cases should not be included in the annual branch expansion plan for our approval.

13.2 Conversion of general banking branches to any type of specialized branch

Proposals for conversion of general banking branches to any type of specialized branch should be included in the annual branch expansion plan for our approval. Such requests would be examined on a case-to-case basis. Details of such requests may be furnished in Annex VII.

13.3 Upgradation of Extension Counters into full – fledged branches

Banks are free to convert their existing Extension Counters (ECs) into full-fledged branches as per their discretion and relocate them within that centre. However, banks should surrender the licences of Extension Counters and obtain a permission letter for full-fledged branch before effecting upgradation, from the Regional Office concerned of RBI/ DBOD CO(in respect of ECs in Maharashtra & Goa). Such cases should not be included in the annual branch expansion plan for our approval.

13. 4 Conversion of Rural branch into Satellite Office

Conversion of a rural branch into satellite office is generally not favoured. However, in exceptional circumstances, such a case may be considered. The proposals for conversion of rural branches into satellite offices should be submitted along with the annual branch expansion plan after obtaining the approval from the District Consultative Committee (DCC) for our consideration.

14. Merger of branches

14.1 General

(a) Banks should, ensure that customers of the branch, which is being merged (transferor branch) are informed well in time before actual merging of the branch so as to avoid inconvenience to them.

(b) The details of merger (date of merger etc.) should be reported to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) immediately after merger of the branch, and in any case not later than two weeks after merger.

(c) After merger the licence of the merged branch (transferor branch) should be surrendered to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) for cancellation.

14.2 Merger of Sole Rural/ Semi Urban Branch

As a matter of policy, merger of a sole rural branch / semi-urban branch is not permitted, as merging the same with a branch outside the centre would render the centre unbanked. However, under exceptional/ unforeseen circumstances (natural calamity, adverse law and order condition), if the bank is compelled to merge any sole rural/ semi urban branch, DCC approval should be obtained and proposal thereof should be incuded in the annual plan for our consideration. Details of such proposals for rural and semi urban branches are required to be furnished to us for our approval as per proforma in Annex VIII.

14.3 Merger of Metropolitan, Urban and Semi Urban branches

Banks may merge one branch with another branch at Metropolitan, Urban and Semi-urban centres (not assigned any responsibility under Government sponsored programme), without seeking prior approval from RBI. As such these proposals should not be included in the annual branch expansion plan for our approval.

15. Closure of branches

15.1 General

(a) Banks should, ensure that customers of the branch, which is being closed are informed well in time before actual closing of the branch so as to avoid inconvenience to them.

(b) The details of closure (i.e. date of closure etc.) should be reported to the Regional Office concerned of RBI / DBOD CO (in respect of branches in Maharashtra & Goa) immediately after closure of the branch, and in any case not later than two weeks after closure.

(c) After closure, the licence of the branch should be surrendered to the Regional Office concerned of RBI / DBOD, CO (in respect of branches in Maharashtra & Goa) for cancellation.

15.2 Closure of Rural branches

As a matter of policy, closure of even loss making branches at rural centres having a single commercial bank branch (excluding Regional Rural Bank branch) is not permitted, as closure would render the centre unbanked. The proposal for closure of a rural branch at a centre served by more than one commercial bank branch should be included in the annual branch expansion plan after obtaining approval of District Consultative Committee (DCC). Details of such proposals are required to be furnished to us for our approval as per proforma in Annex IX.

15.3 Metropolitan, Urban and Semi Urban branches

Banks are permitted to close any branch in metropolitan, urban and semi-urban (not assigned responsibility under Government sponsored programme) centres without seeking prior approval from RBI. As such these proposals should not be included in the annual branch expansion plan for our approval.

III. MISCELLANEOUS ASPECTS

16. Acquisition of premises - Opening of branches

Banks, while acquiring premises for opening of a branch should ensure that the location of the branch complies with the local norms/ laws of Municipal Corporation/ Nagarpalika/ Town area authority / Village Panchayat or any other competent authority.

17. Population group-wise Classification of Centres

For the purpose of correct classification of a centre (city/ town/ village) i.e. rural, semi urban, urban or metropolitan, the bank should mention correct name of the revenue centre and not just the locality. For this purpose, clarification can also be obtained from the Block Development Officer, Village Panchayat, Tehsildar/ Municipality or Municipal Corporation Office/ Office of the District Collector or District Census Authority. Further, banks may also ascertain the population group-wise classification of the centre from the Department of Statistical Analysis & Computer Services (DESACS), Reserve Bank of India, Banking Statistics Division, C-8/9, Bandra-Kurla Complex, Mumbai-400 051, before approaching DBOD CO with their annual branch expansion plan proposals.

18. Reporting to Reserve Bank of India

(a) Reporting to Regional offices/ DBOD CO

Banks should report details of opening of a new place of business, closure, merger, shifting or conversion of any existing place of business immediately and in any case not later than two weeks after opening/closer/merger/conversion etc. to the Regional Office concerned of Reserve Bank of India, except in respect of branches in Maharashtra and Goa, where it should be reported to DBOD CO, Mumbai.

The banks should also report the details of opening, closure and shifting of call centres to the Regional Office concerned of Reserve Bank of India / DBOD, CO (in respect of branches in Maharashtra & Goa).

(b) Branch Banking Statistics

Banks should submit within fourteen days of every quarter, information relating to opening, closure, shifting and conversion of branches in Proformae I & II (Annex X) to Department of Statistical Analysis and Computer Services, (Banking Statistics Division) and the Regional Office concerned of RBI / DBOD, CO. Further, information in respect of Authorised Dealer (AD) branches should be submitted on an on going basis. A ‘Nil' statement must be submitted in case there is nothing to report.


19. Foreign Banks

The branch authorization policy for Indian banks shall also be applicable to foreign banks subject to the following:

Foreign banks are required to bring an assigned capital of US$25 million up front at the time of opening the first branch in India.

Existing foreign banks having only one branch would have to comply with the above requirement before their request for opening of second branch is considered.

Foreign banks will be required to submit their branch expansion plan on an annual basis.

In addition to the parameters laid down for Indian banks the following parameters would also be considered for foreign banks:

Foreign bank’s and its group’s track record of compliance and functioning in the global markets would be considered. Reports from home country supervisors will be sought, wherever necessary.

Weightage would be given to even distribution of home countries of foreign banks having presence in India.

The treatment extended to Indian banks in the home country of the applicant foreign bank would be considered.

Due consideration would be given to the bilateral and diplomatic relations between India and the home country.

The branch expansion of foreign banks would be considered keeping in view India’s commitments at W.T.O. ATMs would not be included in the number of branches for such computation.

Accordingly, foreign banks should submit their annual branch expansion plan to the Department of Banking Operations and Development, International Banking Division, Central Office, Central Office Building(12th Floor), Shahid Bhagat Singh Marg, Mumbai – 400 001.


Annex II

Annual Branch Expansion Plan

Name of the bank:-

Summary of branches, proposed to be opened

Sr.no.

Centre/ Place

District

State

Category
of Branch (Gen/Spl)

Population of the centre

Population
Group-wiseClassification

Underbanked district or Otherwise

        
        

 

* Centre (city/ town/ village) name should be given (like Mumbai, Bangalore, Nashik) not the locality. In case more than one branch is proposed at a centre, locality may be mentioned, like Mumbai-Fort, Mumbai- Bandra etc.

NB: The summary of branches is required to to be submitted in bilingual format (Hindi and English) with a soft copy thereof in 'Akruti Office Priya Expand' font.


Annex III

Annual Branch Expansion Plan

Name of the bank: -

Summary of Non branch / Off site ATMs proposed to be opened

Sr.No.

Centre/ Place

District

State

Population of the centre

Population
Group-wise
Classification

Underbanked district or Otherwise

    

  

* Centre (city/ town/ village) name should be given (like Mumbai, Bangalore, Nashik) not the locality. In case more than one branch is proposed at a centre, locality may be mentioned, like Mumbai-Fort, Mumbai- Bandra etc.

NB: The summary of branches is required to to be submitted in bilingual format (Hindi and English) with a soft copy thereof in 'Akruti Office Priya Expand' font.


Annex IV (A)

Annual Branch Expansion Plan

Name of the bank: -

(i) State wise, population group wise number of existing branches in

'Underbanked' districts

(Position as on )

Sr. No.

State

Number of branches

 

Percentage of rural branches to total branches

Rural

Semi urban

Urban

Metropolitan

Total

        

(ii)State wise, population group-wise number of existing branches in

'Other than underbanked' districts

(Position as on)

Sr. No.

State

Number of branches

 

Percentage of rural branches to total branches

Rural

Semi urban

Urban

Metropolitan

Total

        


Annex IV(A)

(iii) Existing population category wise branches of the bank:

(All-India summary position)

(Position as on)

Rural

Semi-urban

Urban

Metropolitan

Total

No. of branches

% to total

No. of branches

% to total

No. of branches

% to total

No. of branches

% to total

No. of branches

Underbanked Districts:

         

Districts other than Underbanked:

         

Grand Total:

         


Annex IV (B)

Annual Branch Expansion Plan

Name of the bank: -

(i) State wise, population group wise number of existing ATMs

'Underbanked' districts

(Position as on)

Sr. No.

State

Number of On-site ATMs

Number of off-site ATMs

  

Rural

Semi Urban

Urban

Metro

Total

Rural

Semi Urban

Urban

Metro

Total

Grand Total

             

 

(ii)State wise, population group wise number of existing ATMs

'Other than underbanked' districts

(Position as on)

Sr. No.

State

Number of On-site ATMs

Number of off-site ATMs

 
  

Rural

Semi Urban

Urban

Metro

Total

Rural

Semi Urban

Urban

Metro

Total

Grand Total

             

 

(ii) Existing off-site ATMs of the bank:

(All-India summary position)

(Position as on)

Rural

Semi-urban

Urban

Metropolitan

 

No. of ATMs

% to total

No. of

ATMs

% to total

No. of ATMs

% to total

No. of ATMs

% to total

No. of ATMs

Underbanked Districts:

         

Districts other than Underbanked:

         

Grand Total:

         


Annex IV (C)

Annual Branch Expansion Plan

Name of the bank: -

(i) State wise, population group wise number of existing Extension Counters (ECs)

(Position as on)

Sr. No.

State

Number of existing Extension Counters

  

Rural

Semi Urban

Urban

Metro

Total

Remarks

        

(ii) State wise, population group wise number of Extension Counters upgraded into full fledged branches during the year

(Position as on )

Sr. No.

State

Number of Extension Counters upgraded into full fledged branches

  

Rural

Semi Urban

Urban

Metro

Total

Remarks

        


Annex IV (D)

Annual Branch Expansion Plan

Name of the bank:-

Information to be submitted along with Annual Branch Expansion Plan

  1. 1) Medium Term Policy for Branch Expansion Programme of the Bank:
  2. Bank may furnish details of the proposed Medium Term Policy for its branch expansion inclusive of branches & ATMs for a period of 3 years

  3. 2) Expected level of business in the next 3 years-
    1. Deposits
    2. Advances
  4. 3) Expected customer base in the next 3 years
  5. 4) Technology implementation:
    1. a) No. of branches fully computerized
    2. b) No. of branches with network connectivity
    3. c) No. of branches with Core Banking Solution (CBS)

    The bank may also submit a brief write-up on the existing technological infrastructure, various technology initiatives undertaken and the proposed enhancement/ upgradation of technology for achieving its business goals in the medium term

  6. 5) Measures to promote financial inclusion:
  7. The bank may furnish details of the various levels/ slabs of minimum balance required to be maintained by customers and the related services offered by the bank linked to such multiple levels/ slabs of minimum balance.

  8. 6) Schedule of Charges of Products & Services offered:

The bank may forward the Schedule of Charges for various products and services offered to its customers. Minimum balance required for opening of various accounts, charges for non-maintenance of minimum balance etc.

7) Steps proposed to be taken by the bank to ensure that the quality of customer service does not get adversely affected due to expansion of branch network.

8) Number of complaints received by the bank during last two years

Sr.No.

Year

No. of Complaints Received

No. of Complaints Disposed

Pending

     
     

9) Measures proposed by the bank to address the following issues arising out of scaling up of operations due to the proposed expansion of branch network.

  • Internal control and audit
  • Housekeeping and reconciliation
  • Other areas of operational risk
  • HR issues

10) Position regarding priority sector advances.

Sector wise break up may be furnished by the bank.

11) Details relating to Credit Deposit Ratio:

(Position as on)

(Amt. in Rs. crore)

Particulars

Rural

Semi-urban

Urban

Metropolitan

Total

Deposits

     

Advances

     

Credit-deposit ratio

     

Deposits per branch

     

Advances per branch

     

12) The activities of the banking group and the nature of relationship of the bank with its subsidiaries, affiliates and associates.

13) Whether any show-cause notice was issued to the bank and whether any penalty was imposed on the bank during the last one year. If so, the details thereof.

14) List of Branches opened by the bank during the previous one year.

Sl.No.

Reference No. of DBOD and date

Serial No. in Annex

Centre

District

State

Date of opening

     


15) List of authorisations for opening of branches, pending with the bank for utilization.

Sl.No.

Reference No. of DBOD and date

Serial No. in Annex

Centre

District

State

Remarks

     

16) Number authorizations pending with the bank for operationalisation of Off Site ATMs.

17) Any other information bank may like to furnish.


Annex V

List of Underbanked Districts (based on 2001 Population census)

ANDHRA PRADESH

ASSAM

1

ADILABAD

16

MORIGAON

2

ANANTAPUR

17

NAGAON

3

CUDDAPAH

18

NALBARI

4

KARIMNAGAR

19

SIBSAGAR

5

KHAMMAM

20

SONITPUR

6

KURNOOL

21

TINSUKIA

7

MAHBUBNAGAR

BIHAR

8

MEDAK

1

ARARIA

9

NALGONDA

2

AURANGABAD

10

RANGAREDDY

3

BANKA

11

SRIKAKULAM

4

BEGUSARAI

12

VIZIANAGARAM

5

BHAGALPUR

13

WARANGAL

6

BHOJPUR

7

BUXAR

ARUNACHAL PRADESH

8

DARBHANGA

1

CHUNGLANG

9

GAYA

2

DIBANG VALLEY

10

GOPALGANJ

3

EAST KAMENG

11

JAMUI

4

LOHIT

12

JEHANABAD

5

LOWER SUBANSIRI

13

KAIMUR

6

TIRAP

14

KATIHAR

7

UPPER SIANG

15

KHAGARIA

8

UPPER SUBANSIRI

16

KISHANGANJ

ASSAM

17

LAKHISARAI

1

BARPETA

18

MADHEPURA

2

BONGAIGAON

19

MADHUBANI

3

CACHAR

20

MUNGER

4

DARRANG

21

MUZAFFARPUR

5

DHEMAJI

22

NALANDA

6

DHUBRI

23

NAWADA

7

DIBRUGARH

24

PASCHIMI CHAMPARAN

8

GOALPARA

25

PURBI CHAMPARAN

9

GOLAGHAT

26

PURNIA

10

HAILAKANDI

27

ROHTAS

11

JORHAT

28

SAHARSA

12

KARBI ANGLONG

29

SAMASTIPUR

13

KARIMGANJ

30

SARAN

14

KAKROJHAR

31

SHEIKHPURA

15

LAKHIMPUR

32

SHEOHAR

BIHAR

JAMMU & KASHMIR

33

SITAMARHI

1

ANANTNAG

34

SIWAN

2

DODA

35

SUPAUL

3

KUPWARA

36

VAISHALI

4

POONCH

CHHATTISGARH

JHARKHAND

1

BASTAR

1

BOKARO

2

BILASPUR

2

CHATRA

3

DANTEWADA

3

DEOGHAR

4

DHAMTARI

4

DHANBAD

5

DURG

5

DUMKA

6

JANJGIR-CHAMPA

6

GARHWA

7

JASHPUR

7

GIRIDIH

8

KANKER

8

GODDA

9

KAWARDHA

9

GUMLA

10

KORBA

10

HAZARIBAG

11

KORIA

11

KODERMA

12

MAHASAMUND

12

LOHARDAGGA

13

RAIGARH

13

PAKUR

14

RAIPUR

14

PALAMAU

15

RAJNANDGAON

15

PASCHIMI SINGHBHUM

16

SURGUJA

16

SAHEBGANJ

DADRA & NAGAR HAVELI

KARNATAKA

1

DADRA & NAGAR HAVELI

1

BANGALORE RURAL

GUJARAT

2

BIDAR

1

AMRELI

3

CHAMARAJANAGAR

2

BANAS KANTHA

4

GULBARGA

3

BHAVNAGAR

5

KOPPAL

4

DAHOD

6

RAICHUR

5

JUNAGADH

KERALA

6

NARMADA

1

MALAPPURAM

7

PANCH MAHALS

MADHYA PRADESH

8

PATAN

1

BALAGHAT

9

SABAR KANTHA

2

BARWANI

10

SURAT

3

BETUL

11

SURENDRANAGAR

4

BHIND

12

DANGS

5

CHHATARPUR

HARYANA

6

CHHINDWARA

1

FATEHABAD

7

DAMOH

2

JHAJJAR

8

DATIA

3

JIND

9

DEWAS

4

KAITHAL

10

DHAR

5

MAHENDRAGARH

11

DINDORI

MADHYA PRADESH

MAHARASHTRA

12

EAST NIMAR

13

JALNA

13

GUNA

14

KOLHAPUR

14

HARDA

15

LATUR

15

HOSHANGABAD

16

NANDED

16

JHABUA

17

NANDURBAR

17

KATNI

18

NASIK

18

MANDLA

19

OSMANABAD

19

MANDSAUR

20

PARBHANI

20

MORENA

21

SATARA

21

NARSIMHAPUR

22

SOLAPUR

22

NEEMUCH

23

THANE

23

PANNA

24

WARDHA

24

RAISEN

25

WASHIM

25

RAJGARH

26

YAVATMAL

26

RATLAM

MANIPUR

27

REWA

1

BISHNUPUR

28

SAGAR

2

CHANDEL

29

SATNA

3

CHURACHANDPUR

30

SEHORE

4

IMPHAL EAST

31

SEONI

5

IMPHAL WEST

32

SHAHDOL

6

TAMENGLONG

33

SHAJAPUR

7

THOUBAL

34

SHEOPUR

8

UKHRUL

35

SHIVPURI

MEGHALAYA

36

SIDHI

1

EAST GARO HILLS

37

TIKAMGARH

2

SOUTH GARO HILLS

38

UJJAIN

3

WEST GARO HILLS

39

UMARIA

MIZORAM

40

VIDISHA

1

LAWNGTLAI

41

WEST NIMAR

2

SAIHA

MAHARASHTRA

NAGALAND

1

AHMADNAGAR

1

DIMAPUR

2

AKOLA

2

KOHIMA

3

AMRAVATI

3

MOKOKCHUNG

4

AURANGABAD

4

MON

5

BHANDARA

5

PHEK

6

BID

6

TUENSANG

7

BULDHANA

7

WOKHA

8

DHULE

8

ZUNHEBOTO

9

GADCHIROLI

ORISSA

10

GONDIA

1

ANGUL

11

HINGOLI

2

BALANGIR

12

JALGAON

3

BALESHWAR

ORISSA

RAJASTHAN

4

BARGARH

18

KARAULI

5

BHADRAK

19

NAGAUR

6

BOUDH

20

PALI

7

DHENKANAL

21

RAJSAMAND

8

GAJAPATI

22

SAWAI MADHOPUR

9

GANJAM

23

SIKAR

10

JAJPUR

24

TONK

11

KALAHANDI

25

UDAIPUR

12

KANDHAMAL

SIKKIM

13

KENDRAPARA

1

WEST SIKKIM

14

KEONJHAR

TAMIL NADU

15

KORAPUT

1

CUDDALORE

16

MALKANGIRI

2

DHARMAPURI

17

MAYURBHANJ

3

KANCHEEPURAM

18

NABARANGPUR

4

NAGAPATTINAM

19

NAYAGARH

5

PERAMBALUR

20

NAWAPARA

6

PUDUKKOTTAI

21

PURI

7

RAMANATHAPURAM

22

RAYAGADA

8

SALEM

23

SONEPUR

9

THIRUVALLUR

24

SUNDARGARH

10

THIRUVARUR

PONDICHERRY

11

TIRUVANNAMALAI

1

YANAM

12

VELLORE

PUNJAB

13

VILLUPURAM

1

MANSA

RAJASTHAN

TRIPURA

1

ALWAR

1

DHALAI

2

BANSWARA

2

NORTH TRIPURA

3

BARAN

3

SOUTH TRIPURA

4

BARMER

4

WEST TRIPURA

5

BHARATPUR

UTTAR PRADESH

6

BHILWARA

1

AGRA

7

BUNDI

2

ALIGARH

8

CHITTAURGARH

3

ALLAHABAD

9

CHURU

4

AMBEDKAR NAGAR

10

DAUSA

5

AURAIYA

11

DHOLPUR

6

AZAMGARH

12

DUNGARPUR

7

BAGHPAT

13

HANUMANGARH

8

BAHRAICH

14

JALOR

9

BALLIA

15

JHALAWAR

10

BALRAMPUR

16

JHUNJHUNU

11

BANDA

17

JODHPUR

12

BARA BANKI

UTTAR PRADESH

UTTAR PRADESH

13

BAREILLY

56

SANT RAVIDAS NAGAR

14

BASTI

57

SHAHJAHANPUR

15

BIJNOR

58

SHRAVASTI

16

BUDAUN

59

SIDHARTHANAGAR

17

BULANDSHAHR

60

SITAPUR

18

CHANDAULI

61

SONBHADRA

19

CHITRAKOOT

62

SULTANPUR

20

DEORIA

63

UNNAO

21

ETAH

WEST BENGAL

22

ETAWAH

1

BANKURA

23

FAIZABAD

2

BARDDHAMAN

24

FARRUKHABAD

3

BIRBHUM

25

FATEHPUR

4

DAKSHIN DINAJPUR

26

FIROZABAD

5

HAORA

27

GHAZIPUR

6

HUGLI

28

GONDA

7

JALPAIGURI

29

GORAKHPUR

8

KOCH BIHAR

30

HAMIRPUR

9

MALDAH

31

HARDOI

10

MEDINIPUR

32

HATHRAS

11

MURSHIDABAD

33

JALAUN

12

NADIA

34

JAUNPUR

13

NORTH 24 PARGANAS

35

JHANSI

14

PURULIYA

36

JYOTIBA PHULE NAGAR

15

SOUTH 24 PARGANAS

37

KANAUJ

16

UTTAR DINAJPUR

38

KAUSHAMBI

39

KHERI

40

KUSHI NAGAR

41

LALITPUR

42

MAHARAJGANJ

43

MAHOBA

44

MAINPURI

45

MATHURA

46

MAU

47

MIRZAPUR

48

MORADABAD

49

MUZAFFARNAGAR

50

PILIBHIT

51

PRATAPGARH

52

RAI BARELI

53

RAMPUR

54

SAHARANPUR

55

SANT KABIR NAGAR



Annex VI

Annual Branch Expansion Plan

Name of the bank: -

Proposal for shifting of branches from one centre to another centre

Sr. No.

Name of branch
(centre / place)

District

State

Name of the other Bank’s branch at the centre

Proposed to shift to
(centre name)

Distance between two centres

Branch making losses for how many years

Reasons for shifting

Whether DCC approval obtained

Remarks

           


Annex VII

Annual Branch Expansion Plan

Name of the bank: -

Proposal for conversion of General Branches into Specialised Branches

Sr. No.

Name of General branch to be converted (centre / place)

Population Category of the branch

District

State

Proposed Type of Specialised Branch

Reasons for Conversion

How existing customers would be served after conversion

Remarks

         
         


Annex VIII

Annual Branch Expansion Plan

Name of the bank: -

Proposal for merger of branches

Sr. No.

Name of branch (centre / place)

Population category of the branch

District

State

Name of the other Bank’s branch at the centre

Proposed to merge with
(name of branch)

Distance between two branches

Reasons for merger

Whether DCC approval obtained wherever required

Remarks

           

 

    • DCC approval is also required to be obtained for semi urban branches assigned responsibility under Government sponsored programme


Annex IX

Annual Branch Expansion Plan

Name of the bank: -

Proposal for closure of branches

Sr. No.

Name of branch to be closed
(centre / place)

Population category of the branch

District

State

Name of the other Bank’s branch at the centre

Reasons for Closure

Whether DCC approval obtained wherever required

Remarks

         
         

    • DCC approval is also required to be obtained for semi urban branches assigned responsibility under Government sponsored programm

Appendix

List of Circulars consolidated by the Master Circular

No.

Circular No.

Date

Subject

1

DBOD.No.BL.BC.99 /22.01.010/2006-2007

24.05.2007

Doorstep Banking

2

DBOD.No.BL.BC.59/22.01.010/2006-2007

21.02.2007

Doorstep Banking

3

DBOD.No.BL.BC.11/22.01.001/2006

01.07.2006

Master Circular on Branch Authorisation

4

DBOD.No.BL.BC.72 /22.01.009/2005-2006

22.03.2006

Financial Inclusion by Extension of Banking Services – Use of Business Facilitators and Correspondents

5

DBOD.No.BL.BC.58 /22.01.001/2005-2006

25.01.2006

Financial Inclusion by Extension of Banking Services – Use of Business Facilitators and Correspondents

6

DBOD.No.BL.BC.55/22.01.001/2005-06.

23.01.2006

Branch Authorisation Policy

7

DBOD.No.BL.BC.35/22.01.001/2005-06.

08.09.2005

Liberalization of Branch Authorisation Policy

8

DBOD.No.BL.BC.24/22.01.001/2005-06.

03.08.2005

Branch Expansion Strategy of banks

9

DBOD.No.BL.BC.92/22.01.001/2004-05.

20.05.2005

Submission of Quarterly Return-Proformae I &II

10

DBOD.No.BL.BC.86/22.01.001/2004-05

30.04.2005

Doorstep Banking

11

DBOD.No.BL.BC.82/22.01.001/2004-05.

27.04.2005

Shifting of branches/ offices-Rationalization of procedure

12

DBOD.No.BL.BC.39/22.01.001/2004-05.

10.09.2004

Opening of central processing centres/ back offices etc.

13

DBOD.No.BL.BC.23/22.01.001/2003.

11.09.2003

Providing Depository Services at Extension Counters.

14

DBOD.No.BL.BC.13/22.01.001/2003.

18.08.2003

Take over of bank branches.

15

DBOD.No.BL.BC.5/22.01.001/2003.

23.07.2003

Third party transfer of funds through ATMs.

16

DBOD.No.IBS.BC.32/23.03.001/2002-2003.

17.10.2002

Closure of branches of foreign banks.

17

DBOD.No.BL.BC.74/22.01.001/2002.

11.03.2002

Conversion of General Branches into Specialised SSI branches.

18

DBOD.No.BL.BC.62/22.01.001/2002.

28.01.2002

Third Party advertisement on ATM Network.

19

DBOD.No.BL.BC.23/22.01.001/2000-01.

12.09.2000

Opening of branches/ extension counters/ shifting etc.-Obtention of prior licence.

20

DBOD.BC.No.127/12.05.005/99-2000.

30.11.1999

Rationalisation of Returns submitted by banks to RBI

21

DBOD.No.BL.BC.74/22.01.001/98.

29.07.1998

Shifting of Rural branches outside the Block/ Service Area and closure of rural branches.

22

DBOD.No.BL.BC.115/22.06.001/97

21.10.1997

Branch Banking Statistics-Submission of Monthly Returns-Revision of Proformae II & III

23

DBOD.No.BL.BC.64/22.01.003/97.

05.06.1997

Opening of offices of commercial banks in the National Capital Territory (NCT) of Delhi.NOC from Delhi Development Authority (DDA).

24

DBOD.No.BL.BC.76/22.01.001/96.

17.06.1996

Delegation of administrative powers to Regional Offices of DBOD.

25

DBOD.No.BP.BC.60/21.03.051/96

16.05.1996

Automated Teller Machines (ATMs)

26

DBOD.No.BP.BC.123/21.03.051/95.

16.10.1995

Automated Teller Machines (ATMs)

27

DBOD.No.BP.BC.152/21.03.051/94

29.12.1994

Automated Teller Machines (ATMs)

28

DBOD.No.BL.BC.152/22.01.001/93

24.08.1993

Opening /Closing of bank branches.

29

DBOD.No.BL.BC.41/22.01.001/92.

09.10.1992

Delegation of authority to

banks for shifting of offices, spinning-off of business etc.

30

DBOD.No.BL.BC.132/22.01.001/92.

20.05.1992

Delegation of authority to banks for shifting of offices, opening of controlling offices, spinning-off of business etc.

31

DBOD.No.BL.BC.24/BL.66/91

06.09.1991

Change in names of offices/branches in Kerala.

32

DBOD.No.BL.BC.132/C.168 (M)-91.

11.06.1991

Opening of Specialised Housing Finance Branches.

33

DBOD.No.BL.BC.81/C168 (64D)-91.

16.02.1991

Opening/closing of bank branches.

34

DBOD.No.BL.BC.68/C168 (64D)-91

16.01.1991

Approach to future branch expansion.

35

DBOD.No.BL.BC.16/C168 (64D)-90

12.09.1990

-do-

36

DBOD.No.BL.BC.72/C168 (64D)-87

14.12.1987

Branch Licensing Policy 1985-90 -Setting up of Satellite/mobile branches.

37

DBOD.No.BL.BC.86/C168-84

21.08.1984

Change in the name of branch necessitated due to change in name of locality/street etc.

38

DBOD.No.BL.BC.147/C168-78

20.10.1978

Change in name of branches of banks

39

DBOD.No.BL.99/C.168-68

19.11.1968

Opening of Mobile Offices


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