What changed
Earlier, general permission for branch expansion in these areas was limited to physical branches. Now, RBI has extended the same liberalised policy to mobile branches and mobile ATMs, removing the need for prior approval. Banks can operationalise these units simply by reporting to RBI in the prescribed format.
What it means for you
Banks can now rapidly extend banking services to underserved and remote areas using mobile vans and ATMs, without waiting for case-by-case RBI clearance. This reduces administrative delays and encourages financial inclusion. However, mobile branches must avoid areas already served by cooperative banks or regular commercial bank branches, and must maintain clear schedules and publicity.
What you must do
- Identify eligible Tier 3-6 centres and North Eastern/Sikkim locations for mobile branch and ATM deployment.
- Ensure mobile branches are well-protected vans with at least two officials, cash, and books, and visit each location on fixed days/hours.
- Publicise the mobile branch schedule widely in each village and display it at service points; update customers on any changes.
- Report operationalisation of each mobile branch and ATM to RBI using the Annex format provided in this circular (as per Master Circular DBOD.No.BL.BC.8/22.01.001/2010-11).
- Avoid deploying mobile branches in villages already served by cooperative banks or regular commercial bank branches.
Who it affects
Domestic scheduled commercial banks (excluding RRBs), Banks' branch expansion and financial inclusion teams, Rural and semi-urban customers in Tier 3-6 centres and North Eastern states/Sikkim
Do we need RBI approval for each mobile branch or ATM under this circular?
No, general permission is granted. You only need to report the operationalisation to RBI in the prescribed format after setting up the mobile branch or ATM.
Can we operate a mobile branch in a village that already has a cooperative bank branch?
No. The circular explicitly states that mobile branches should not visit villages or centres served by cooperative banks or regular commercial bank branches.
What are the key operational requirements for a mobile branch?
It must be a well-protected van with at least two bank officials, books, and a cash safe. It should visit each location on specified days and hours, and all transactions must be recorded in the base branch or data centre books.